Gold prices could move modestly higher with some help from emerging markets, namely China and India. However, the dollar has recently retreated in noticeable fashion, helping aid gold’s ascent along the way.
Indian demand is vital for gold because the country is the second-largest buyer of the yellow metal behind China. India, one of the world’s largest gold consumers, could be set to lower its import tax on bullion, which could be major catalyst for gold prices.
“Demand dropped by 18% in Q1 2017 from the same period last year, according to the World Gold Council (WGC). The WGC did note that this could be skewed by the “strongest ever first quarter in 2016.” Indian demand was very strong in Q1, rising 15% over the year earlier. Many analysts, though, expect the country’s overall demand to be in line with last year, which could mean a letdown in the second half of the year,” adds OptionsExpress.
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Tom Lydon’s clients own shares of GLD.