Gold Falls 1.1% to $4,677 After Modi Urges India to Halt Buying for 1 Year
Updated
Updated · Barron's · May 11
Gold Falls 1.1% to $4,677 After Modi Urges India to Halt Buying for 1 Year
11 articles · Updated · Barron's · May 11
$4,677-an-ounce gold futures fell 1.1% early Monday after Prime Minister Narendra Modi urged Indians to stop buying gold for a year.
India relies heavily on imported gold, so Modi framed the appeal as a way to protect foreign-exchange reserves and ease rupee pressure as the Iran war drives oil prices higher.
The selloff also reflected fears the Middle East conflict could drag on after Donald Trump criticized Iran’s response to a U.S. peace proposal, raising inflation risks and weakening the case for Fed rate cuts.
Barrick Mining’s stock dropped 1.8% premarket and the VanEck Gold Miners ETF lost 1.6%, overshadowing Barrick’s stronger-than-expected quarter—98 cents a share on $5.22 billion in revenue.
Will India's deep cultural attachment to gold undermine Prime Minister Modi's plan to rescue the nation's economy?
As war fuels inflation, can gold reclaim its safe-haven status against the pressure of rising interest rates?
Could the crisis in the Strait of Hormuz permanently accelerate the world's transition away from fossil fuels?