Asia recently encountered a drop in gold prices. Meanwhile, investors have been showing increased interest in China manufacturing data. Since the stronger US dollar made gold less appealing, there was a five year drop in worldwide oil prices. Currencies in emerging markets escalated vis-à-vis the dropping dollar but there was a dip in Japanese stocks following its credit rating.
Tokyo likewise encountered a drop in the precious metal, which was more surprising given its high record over the last year.
Moving over to India, the region recently encountered an alleviation of the rigid restrictions that have been in place on gold imports. They originally existed in order to diminish the burgeoning account deficit. But it led to frustration in the jewelry industry, simultaneously with an increase in gold smuggling.
After China, India is the biggest importer of gold. The Reserve Bank of India has now lifted the rule that requires the re-export of at least a fifth of the gold importers bring in.
