Gold pushed to new records as India demand reignites
The Peninsula
London: Gold reached record breaking levels in September, buoyed by a bumper US interest rate cut, fears of rising geopolitical conflict, and an impor...
London: Gold reached record-breaking levels in September, buoyed by a bumper US interest rate cut, fears of rising geopolitical conflict, and an import tax cut in India that has galvanised local demand.
India, the world's second largest consumer of gold jewellery, cut the import tax on gold in July to six percent from 15 percent, sparking a significant increase in appetite for gold jewellery, bars and coins.
The legislation has led to "soaring" local imports of the metal which has given "fresh impetus" to its upwards price, explained Han Tan, chief market analyst at Exinity in an interview with AFP.
Gold has been smashing records throughout September, reaching a new high of $2,685.58 an ounce on Thursday, up around 30 percent from the start of the year.
The sky-high prices have also been buoyed by gold's status as a safe haven investment during times of economic and political uncertainty.
