Gold, Silver and metals prices witnessed huge volatility throughout the year but investment demand continues to be robust for precious metals despite the sharp fall in Gold imports in Q4, Investment demand constituted 35% of gold demand while jewellery demand slipped due to prevailing higher prices leading to fall in gold imports to 878 tonnes compared to 958 tonnes in 2010.
Several positive factors have emerged in the Indian economy that could provide firm support for commodities in 2012. The Reserve Bank of India has halted the policy of raising key bank rates and RBI Governor has hinted that monetary easing could begin sometime on easing of food inflation to 0.42% while headline inflation has fallen to 9.75%. The HSBC Purchasing Managers Index has risen to 54.2, the highest level in six months while China’s PMI fell from 50.3 to 49 in November.
Several positive factors have emerged in the Indian economy that could provide firm support for commodities in 2012. The Reserve Bank of India has halted the policy of raising key bank rates and RBI Governor has hinted that monetary easing could begin sometime on easing of food inflation to 0.42% while headline inflation has fallen to 9.75%. The HSBC Purchasing Managers Index has risen to 54.2, the highest level in six months while China’s PMI fell from 50.3 to 49 in November.
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