By a long shot, India is and has been one of the largest gold buyers and collectors in the world. But over the past two years government officials have slowed down their purchasing through a series of draconian duties on gold imports that have driven the population to change course and accumulate silver at record levels.
This weekend however may change this course once again as it is expected that the import tariffs that suffocated the flow of gold into the markets will be removed, causing the potential for a $50 spike in gold to over $1300 in the short term, and a medium term price rise to over $1400.
All lights for gold are green, and rather than beginning a correction, gold may be poised to intensify its rally.
Investors with widely differing views on gold all seem to be pressing their buy buttons at the same time. That’s something that has not happened in a long time. The bottom line is this:
Key bank economists are forecasting a new upcycle for commodities, which will begin later this year, India may cut the import duty on Sunday night (February 28), Shanghai prepares to launch its gold price fix, gold ETFs are adding serious tonnage, the chartists are happy, and most discussion of US interest rate policy (whether hawkish or dovish) is bullish for gold. - Silver Doctors