Global Gold ETF holdings pick up; Indian Gold demand remains quiet

INDIA May 09 2016 7:36 PM     

MUMBAI (Scrap Register): Holdings  of gold by global exchange-traded funds have been picking up again, although  buying from the key consuming nation India remains lackluster after a strike in  the jewelry sector, said Commerzbank in a research note.

“The gold price  has been finding support from high inflows into the gold ETFs of late – to the  tune of 6.3 tonnes on Friday,” said Commerzbank. “Holdings were even topped up  by nearly 40 tons last week, thereby more than reversing the outflows seen in  April.”

Meanwhile, gold demand in India meanwhile is still “subdued,”  Commerzbank says, citing provisional data from the country’s finance ministry  showing India imported only 22.3 tons of gold in April, down 74% year-on-year.  

“This was no doubt due in part to the strike by Indian jewelry  manufacturers,” Commerzbank added.