LAUNCESTON, Australia, Nov 28 (Reuters) – The spot price of gold has climbed to a six-month high, buoyed by hopes that monetary tightening in western countries is largely done and dusted.
While signs that the U.S. Federal Reserve and other western central banks have finished increasing interest rates are a definite positive for the precious metal, they’re not the only factor. China and India make up more than 50% of the physical gold market, giving the two Asian heavyweights a major influence on the likely price trajectory.
In local currency terms gold is close to record highs in both China and India, and there are signs that this may be starting to impact on retail demand in both countries. Spot gold reached a six-month high of $2,017.82 an ounce on Monday and is up 11.5% since the recent low of $1,809.50 on Oct. 6.
In Indian rupees, gold reached 168,145 rupees an ounce on Monday, close to its all-time high of 169,401 rupees from May 4. It has gained 11.8% since the recent low on Oct. 6 of 150,401 rupees.
For the rest of this article: https://www.reuters.com/markets/commodities/soft-china-india-may-undermine-golds-rally-hopes-russell-2023-11-28/