Gold Price: Gold can be expensive in the festive season, the connection between Turkey and China has come to the fore, this is the whole matter

Gold Price: If you are preparing to buy gold on festivals, then this news may surprise you. If you are preparing to buy gold on festivals then you may have to pay a very high price for it. Banks supplying gold have reduced the arrival of gold in India. The gold coming into India is being sent to the markets of China and Turkey. Banks have cut shipments to India ahead of festivals.

According to a report by news agency Reuters, ICBC Standard Bank, JP Morgan and Standard Chartered Bank, which supply gold to India, are cutting gold imports. Usually before the festivals, these banks import gold in large quantities and deposit it in their vaults. But this time around - things are different.

How much is the demand for gold in India

Gold supply banks have reduced the number of shipments arriving in India ahead of major festivals to focus on other markets, along with China and Turkey. This gold is being sent to those countries where banks are getting better premium. Due to this there may be a shortage of gold in India. India is the second largest gold market in the world. In view of this, Indian buyers may have to pay higher prices to buy gold in the coming peak festive season.

Major gold suppliers in India ICBC Standard Bank, JP Morgan and Standard Chartered have empty vaults with only 10% gold deposits as against the gold deposited a year ago. Where ideally a few tonnes of gold should be in safes this season of the year, it is now only a few kilos.

Gold price may increase

The effect of rising gold price in India has started showing in many cities. Bullion traders say that banks will sell where they will get a higher price. The markets in China and Turkey are now supplying more money for gold. Buyers in China and Turkey are paying very high premiums right now. It is very less as compared to the Indian market.

Gold imports in india decreased

Gold imports into India in September fell 30% from a year earlier to 68 tonnes, while gold imports to Turkey increased by 543%. Pure gold imports into China through Hong Kong jumped nearly 40% in August to a four-year high. Festivals like Dussehra, Diwali and Dhanteras are falling in October, in which buying gold is considered auspicious. The wedding season begins after these festivals. In view of this, it is not difficult to predict that there may be a sharp jump in the price of gold in India.