While we wait for the Fed’s interest rate announcement this afternoon, let’s take a moment to look around. Demand for gold is up in England following last weeks’ elections, with gold up about 2% in British pound currency. Demand for gold is also up in Asia this year. India settled on a 5% GST tax rate after early discussion of as much as 10%.
Demand in China is also up; the SGE reported higher volumes than last year. Your Gold Enthusiast suspects much of this is what’s called “private demand”, meaning individual people buying gold, rather than industry finding new uses and thus increasing manufacturing consumption. Today’s featured article backs up that perception, noting that prices for scarce gold coins has ramped up.