Home / Metal News / India: Gold eyeing Monsoon and Modi govt's first Budget

India: Gold eyeing Monsoon and Modi govt's first Budget

iconJul 10, 2014 10:05
Source:SMM
The gold market is keeping an eye on two developments in India, said investor and newsletter writer Dennis Gartman.

INDIA July 09 2014 12:31 PM MUMBAI (Scrap Register): The gold market is keeping an eye on two developments in India, said investor and newsletter writer Dennis Gartman.

Traders are making time, awaiting the release of a new budget, with hopes there will be a cut on tariffs on gold imports.

India's Budget Session of the 16th Lok Sabha is set to begin on Wednesday with high expectations. The Modi government will be presenting its maiden Rail Budget on Tuesday and the General Budget on 10 July.

The hope that the tariff would be wholly erased has itself been erased, with the market in India now expecting to see the tariff merely cut by 25%, perhaps by 30%, but no more. Anything more than that, however, would be supportive for gold, said Gartman.

The market is also keeping a wary eye on the Indian Monsoon, describing rains as finally arriving. June rainfall was below normal, but the rains of July and August are most meaningful to India’s crops.

If the agri community has a fine crop, then gold demand shall rise given the rural Indian communities’ historic interest in owning gold, but if the monsoon fails, the gold bulls shall have a far more difficult time of it,” Gartman concluded.

 

gold market

For queries, please contact Michael Jiang at michaeljiang@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

SMM Events & Webinars

All