| Markets have been surprised by how little geopolitical events have moved the gold price in recent months. The gold price has risen some 8% this year closing last week at around $1300/ounce as uncertainty over events in Ukraine and the military coup in Thailand have raised risk perceptions among investors. However, the recent elections in India have introduced another variable.
Last July, India’s central bank introduced what was termed the 80:20 rule, whereby a restricted number of importers could import physical gold with an increased 10% duty provided they re-exported up to 20% as finished jewelery. Understandably, this reduced imports in the world’s second largest consumer and put downward pressure on prices...........................................Full Article: Source
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