“India’s gold buying in the key December quarter is likely to fall to the lowest level in eight years, hurt by poor investment demand and back-to-back droughts that have slashed earnings for the country’s millions of farmers,” reports Reuters.
Demand for gold in China is faltering and there is concern India will not be able to pick up the slack.
According to the World Gold Council, India imported 891.5 tons of gold last year while demand was 811.1 metric tons. The council believes consumption will increase to between 900 tons and 1,000 tons this year. [India Unlikely to Stem Gold’s Decline]
“Looking at a chart of the GLD, the benchmark gold ETF, Ross explained why he thinks the technicals are setting up for a move below $100, which corresponds with $1,000 in the commodity price,” according to CNBC.
SPDR Gold Shares
Tom Lydon’s clients own shares of GLD.