The situation in India continues to be problematic. The liquidity that the Modi government had promised following its currency “conversion” scheme has not yet appeared. Eventually the new currency denominations promised by the government will be fully available, but until then India’s citizens are living in a relatively “cashless” environment when “cash” has always been the preferred method of doing day-to-day business.
As a result gold buying on the part of India, the most important gold buying nation in the world, has remained subdued at best.
In that light, gold has held on quite well and we are left to wonder how strong it shall be when India returns in full regalia?