Home > Forex channel >                 text

India's economic boom is expected to be a solid backing for gold demand

November 08, 2018 17:17
source: Chart home
edit:Eastern Fortune Network

Oriental Fortune APP

  • Convenient
  • Mobile phone viewing financial news
  • Professional, rich
  • Master the pulse of the market

Read articles on your phone

  • prompt:
  • WeChat sweep
  • Share it to you
  • Circle of friends

K map gc00y_0

This week India celebrated its biggest traditional festival, Diwali. In the past, the rise in gold demand before the Diwali has been enough to push the price of gold higher. However, the demand for gold coins and accessories before the holiday was mild, as the Indian rupee weakened against the dollar, making gold lose its appeal to some buyers.

According to Reuters, the price of gold calculated in rupees at the end of October rose to its highest level since September 2013. Affected by the expectations of the Diwali, gold prices usually present a premium, but this year many retailers are trying to attract customers through discounts.

And in the future may encounter more pain caused by the devaluation of the rupee. UBS expects a global report in a recent reportOil priceThe rupee may continue to be under pressure. India is a net importer of oil. Oil prices have risen by more than 20% in the past 12 months, benefiting from supply disruptions in Venezuela and Libya and elsewhere. The US imposed sanctions on Iran, India’s third-largest crude oil supplier, also boosted oil prices.

Despite this, the Indian economy is currently expanding at the fastest rate in the world. As the middle class grows, this should have a positive impact on gold demand in the long run.

InternationalMonetary FundThe organization (IMF) recently predicted that India's economy will grow by 7.3% this year, 0.7 percentage points higher than the expected growth rate in China, and 2.6 percentage points higher than the average of emerging and developing economies. India's economic growth rate is expected to be faster next year, reaching 7.4%.

According to UBS, the wealth of Indian billionaires increased by 36% in 2017. The number of Indian billionaires has increased by 19 to 119.

In summary, U.S. Frank Holmes, chief investment officer at Global Investors, predicts that the rapid expansion of India's economy will have a significant impact on gold demand and create more wealth.

(Article source: Chart home)

                (Editor: DF134)

you might be interested
  • News
  • stock
  • global
  • Hong Kong stocks
  • US stocks
  • futures
  • Foreign exchange
  • life
    >
click to see more
No more recommendations
  • Code
  • name
  • Latest price
  • Quote change
Please download Oriental Fortune products to see real-time quotes and more data.
Solemnly declare:Oriental Fortune.com publishes this information to disseminate more information and has nothing to do with the position of this website. Oriental Fortune Network does not guarantee the accuracy, authenticity, completeness, validity, timeliness, originality, etc. of all or part of this information (including but not limited to text, data and graphics). The relevant information has not been confirmed by this website, and does not constitute any investment advice for you. According to this operation, the risk is at your own risk.