By Dave Forest
The gold price continues to look perky this week. With a move to near $1,350 per ounce having some analysts suggesting another breakout may be at hand.
And in the world’s biggest gold-consuming nation, those higher prices are still having a big effect on buying.
A new report Monday showed that gold consumers in India are still staying away from the physical market. In fact, they may be avoiding purchases more than ever — with the past month showing one of the biggest declines in buying since the gold price took off this past January.
That study came from gold analysts GFMS. Who estimated that India’s gold imports for July probably dropped a whopping 79.3 percent as compared to the same month in 2015.
The group pegged India’s July gold shipments at just 20 tonnes for the month. Suggesting that demand for this period may have been down by nearly 80 tonnes — a massive fall in overall demand.
This marks the sixth-straight month that India’s gold imports have fallen compared to last year. Showing that the effects of higher prices are far from abated in this key consuming center — in fact, the pinch in physical demand may be getting worse.