Gold futures rose modestly in the early going of Tuesday’s Asian session even after India announced it would increase import taxes on bullion to reduce its trade deficit.
Gold futures were likely to test support USD1,666.55 a troy ounce, Thursday's low, and resistance at USD1,696.25, Thursday's high. U.S. markets were closed Monday due to the Martin Luther King, Jr. national holiday.
As was previously speculated upon, India, the world’s largest gold buyer, raised its import tariff on gold and platinum to 6% from 4%. India, Asia’s third-largest economy, is hoping the high tax rate on the two precious metals will curb a current account deficit at a time when the country is working to keep its investment-grade credit rating. The bulk of India’s current account deficit is attributed to the country’s voracious appetite for gold.
In March 2012, India raised taxes on gold bars and coins, but demand for the yellow metal still moved higher. Indian policymakers said the new tax increase could be reviewed if gold imports drop too dramatically.
Gold futures were likely to test support USD1,666.55 a troy ounce, Thursday's low, and resistance at USD1,696.25, Thursday's high. U.S. markets were closed Monday due to the Martin Luther King, Jr. national holiday.
As was previously speculated upon, India, the world’s largest gold buyer, raised its import tariff on gold and platinum to 6% from 4%. India, Asia’s third-largest economy, is hoping the high tax rate on the two precious metals will curb a current account deficit at a time when the country is working to keep its investment-grade credit rating. The bulk of India’s current account deficit is attributed to the country’s voracious appetite for gold.
In March 2012, India raised taxes on gold bars and coins, but demand for the yellow metal still moved higher. Indian policymakers said the new tax increase could be reviewed if gold imports drop too dramatically.
Oil falls on oversupply concerns
Oil futures were mixed in the early part of Tuesday’s Asian session as traders pondered the notion that supply may once again outstrip demand this due to a tepid global economic recovery. Trade was sluggish because U.S. markets were closed Monday due to the Martin Luther King, Jr. national holiday.
Natural gas prices extend gains as cool weather holds
Natural gas futures extended Friday's gains into Monday as weather forecasts continued to indicate that a cold snap across much of the central and eastern portions of the U.S. won't ease up in the coming days.
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