The surging local gold price premiums in China and India during September hints at strong local gold demand in these countries.
SEATTLE (Scrap Monster): The Gold Market Commentary report published by the World Gold Council (WGC) suggests that gold remained resilient during the month of September this year, despite headwinds on account of rising U.S. dollar and higher bond yields. In addition to the above, the dip in gold prices were further accelerated by 95 tonnes of outflow from global gold ETFs.
According to WGC, the yellow metal prices registered sixth consecutive month of decline, dropping by 2.6% in September. Gold emerged as an outperformer, when compared with global equities, global bonds and commodities which recorded decline by 9.5%, 5.1% and 8.4% respectively.
The trajectory of US dollar surge will at as the key factor that will determine gold’s prices for the rest of the current year. Any challenge to dollar will prove beneficial for gold prices. The rising interest rates are unlikely to have a prominent impact on gold prices in Q4 this year, as it had in the initial six-month period of the year, WGC noted.
The surging local gold price premiums in China and India during September hints at strong local gold demand in these countries. Also, the U.S. mint sales paints a rosy picture for the final quarter of the year, having hit 22-year highs in September.
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