| India’s gold market was quiet last week after experiencing a bout of volatility on the announcement of new gold schemes in the Union Budget. Market experts outside India believe that if the new scheme clicks with savers, it could erode demand for physical gold, given that India is among the top two markets for bullion in the world.
With Indian households estimated to own about 20,000 tonnes of gold, even if 5 per cent of it were to be unlocked by the new gold deposit scheme, it would reduce the country’s imports by 1,000 tonnes. For 2014, the country had imported 769 tonnes of gold. Gold prices closed at $1,167/ounce, down 3.8 per cent for the week due to a stronger dollar. The US dollar index moved up to 97.6 from 95.29 in the previous week. This week, the US economic calendar is light with just jobless claims and retail sales numbers due on Thursday...............................................Full Article: Source
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