Commodity Readings: Cement & Steel, Gold & Silver, Global Gold
- Yahoo: Cement, steel exports curbed
The spectre of rising inflation cast its shadow on the foreign trade policy (FTP), with the Centre using the unveiling of the annual supplement to announce a ban on cement exports and removal of incentives for steel exports.
“To curb inflation in essential commodities, the government has banned the export of non-basmati rice, edible oils and pulses. Benefits of the DEPB (Duty Entitlement Passbook) scheme have been withdrawn on the export of rice, cement and primary steel items” . . .
- Bespoke: Commodity Snapshot
I think we’ll see 10,500 before 14,000 for gold in Indian rupees (per 10 gms).
- Zeal LLC: Global Gold 4
Today India is the world’s biggest gold consumer by far. Indians are shrewd gold buyers very sensitive to the gold price. Yet they have still helped drive the pair of huge Stage Two uplegs seen around the world. Like all investors, the higher the price of an asset goes the more the Indians want it. So sustained high India gold prices are very bullish for global investment demand since India is such a big component of it.
The rupee has also been weak, but it has still risen over the course of this gold bull. The vast majority of this currency’s entire secular bull occurred quickly in late 2006 and early 2007. Yet despite this sharp surge, gold barely retreated. In Stage Two gold demand is so universal that it transcends sharp moves in any one currency, even within the world’s biggest gold consumer. Indians are leading Stage Two buying.
Of course, trading gold in India requires more emphasis on global gold prices & the rupee instead of domestic factors (see yesterday’s drop in the GOLDBEES gold ETF inspite of an inflation report at 7.4%!)
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