India’s Demand For Spot Gold Supporting The Market

India’s Demand For Spot Gold Supporting The Market

$GLD

While China’s demand for Gold has cooled this year, as the Chinese have been more interested in the soaring stock market, strong demand from India has risen, helping to support the precious Yellow metal.

Gold is little changed this year, trading at 1,173.60 oz Friday, down from 1,184.10 oz on 31 December 2014.

China is the world’s # 1 Gold buyer, and India is # 2. Normally their buying patterns are alligned, as they purchase the metal after its price drops and sell it after rallies. But in China, investors have been focused the stock explosion that has seen the Shanghai Composite index up 41.5% YTD.

But Gold buying remains strong in India, as the government has eased import restrictions.

Elliott Wave theory indicates that Gold is now completing a 3.5 year Southside correction and is on the verge of a major Bull market phase that can last the next 50 years. We are now on the cusp of the next major Bull market in the investing world. That according to  Avi Gilburt, author of ElliottWaveTrader.net. He thinks it can replicate the 8X rise it enjoyed between Y 2000, when it traded at $250, and Y 2011, when it marked a record high of 1,923 oz.

Others are at mildly optimistic too, despite the likelihood of an interest-rate increase by the Fed later this year or next.

“Even if we got a small hike in the U.S., I can’t believe it will follow with more. A slow rate-hike cycle wouldn’t hurt gold in the long run,” a commodity fund manager at Lupus Alpha Asset Management in Frankfurt said Thursday.

Have a terrific weekend.

HeffX-LTN

Paul Ebeling

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