Tailwinds for gold prices will need global support, which they could get from India after the country experienced a strong showing for imports in September.
Gold prices have been relatively staid for most of 2021 after a strong showing in 2020 as investors ran towards the precious metal to escape the market effects of the pandemic. Now that the global economy is recovering after vaccination efforts have begun, risk-on is prompting investors to turn away from gold.
However, as festival season descends upon India, this could be what gold needs to help buoy prices. Gold needs to break past the $1,800 level in order to experience some kind of breakout that could lead to a rally through the end of the year.
“India’s gold imports in September soared 658% from last year’s lower base as a correction in local prices to the lowest level in nearly six months prompted jewellers to step up purchases for the upcoming festive season, a government source said,” a Reuters report noted.
“Higher imports by the world’s second-biggest bullion consumer could support benchmark gold prices, which have fallen nearly 15% from an all-time high of $2,072 in August 2020,” the report added.
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