The demand of market participants in India could potentially increase later this year due to seasonal buying, HSBC analyst James Steel wrote recently.
In the event that his prediction is correct, the corresponding increases in the value of the metal could provide a boon to those who engage in precious metals investing.
“Despite the expectations that gold imports may fall, India’s appetite for bullion is anticipated to pick up later in the year due to seasonal demand, with the festive gold-buying holiday Diwali” happening in November, Steel wrote in the report, according to MarketWatch.
Focusing on how the demand of this Asian nation could potentially increase going forward might be better for the gold market than fixating on the future of asset purchases that will be made by the Federal Reserve.
Officials of this central bank have provided various communications related to quantitative easing, and markets have fluctuated significantly due to the different statements.
There are doubts about what will happen to India’s demand for gold, as the import tax on the precious metal was increased recently by the nation’s central bank, MarketWatch reports. As a result of this change to the rule, Indians who want to take part in precious metals investing by importing gold will need to pay more to do so.