The surge in gold physical demand in India and China affected New York and London. In New York gold prices jumped and also in London it showed a slight improvement.
Chinese imports from Hong Kong more than doubled in March. Strong expectations are for India, it will go beyond 100 metric tons of gold for the second month in May as jewelers surge to defeat the central bank controls on imports by banks, as Rajesh Khosla, managing director of MMTC-PAMP India Pvt. Ltd. stated. Gold price has recovered about 10% since then on demand for gold jewelry and coins.
June gold delivery rose by 0.3% to reach 41,452.50 an ounce by 6:40 a.m. EST on the Comex. Futures trading decreased by 24% average of the past 100 days till our day today. Gold instant delivery was a bit changed at $1,453.37 in London, once it dropped around 0.3% after a rise of 0.4%.
According to data compiled by Bloomberg, holdings of The SPDR Gold Trust, the leading bullion-backed exchange-traded product, dropped 0.4% to reach 1,057.79 tons of gold, the lowest level since March 2009.
Investor lost trust in metals as an investment, as gold fell 13% this year as equities reassembled. The Dow Jones Industrial Average closed yesterday exceeding 15,000 for the first time, at the meantime the S&P 500 index closed at a record for four days straight.