Friday, September 4, 2009

More Bullish News for Gold

While the U. S. stock and bond markets allegedly respond to the Labor Dept. unemployment report, gold continues on its merry way upward. One of the data points that is new news to me and is unequivocally bullish is the following, titled India July gold imports up 7.6 pc y/y to 41 tonnes: WGC:

MUMBAI: India imported 41 tonnes of gold in July up 7.6 per cent from 38.1 tonnes imported a year earlier, the top official of World Gold Council (WGC) in India said on Friday. "The trend started changing in May this year, after the Akshaya Tritiya festival," Ajay Mitra, managing director for Indian subcontinent of WGC, told Reuters. "Even August is showing a rise on year, though we are still compiling the figures," he said.

I had read recently that India's gold imports were down sharply from their highs. This report does not contradict that, but it suggests that buying interest has picked up despite rising prices.

Another Economic Times article describes gold in rupees hitting an all-time price high:

The bullion in the national capital today shot up to an all-time high of nearly Rs 16,000 per 10 gram on last minute heavy purchases by traders to build up stocks before the start of the inauspicious 'Sharad' tomorrow.
The surge in the gold rates was led by heavy demand from jewellers and stockists before Shradh, a inauspicious fortnight for making any fresh purchases, marketmen said.

Gold, and not the churning U. S. stock market, remains the main story.

I will discuss the (un)employment numbers with comments on the stock market in a post later today or this wekend. There is too much to digest to do it rapidly. Hint: look at the household survey, not just the "headline" establishment data. For a link to the report, click HERE.

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