Gold Silver Reports ~ Gold has recouped the ground it lost during previous session aided by weaker equities and inflows into Exchange Traded Funds(ETF). Gold surged by around 1 per cent on Tuesday as oil and equities fell.
One of the vital factors that boosted gold is ETF inflows. Assets in SPDR Gold Trust, the top gold-backed exchange-traded fund (ETF), surged over 19 tonnes to 752.29 tonnes on Monday, the highest since March 2015.
However, analysts warn that the uptrend will turn out to be a temporary phenomenon if physical demand from India and China fades. Discounts in India have hit a record high of $32 against LBMA, while prices in China have also turned cheaper relative to the global benchmark in a sign of fading demand.
India’s gold imports in February is likely to hit a two-year low as buyers are turning away worried by surge in prices and hopes of import tax cuts. India’s overseas gold purchases are likely to fall to 25 tonnes in February. ~ Neal Bhai Reports
