Page 7 - Bullion World Volume 3 Issue 10 October 2023

Bullion World | Volume 3 | Issue 10 | October 2023

EDITORIAL

Dear Readers,

At the outset, warm wishes to all of you as we commence
the festive season!!!

A few words on India gold market. Gold, traditionally a
gauge of economic uncertainty, enjoyed a robust start
to the year with a 13% surge in INR terms in the first
five months. Gold price consolidated between June
and August before sliding from INR 59,655 to 56,565
per 10 grams in September and early October. Year-
to-date (Jan-Sep’23) gold price averaged INR 55,000,
with a high of INR 61,845 and a low of INR 54,771 per
10 grams. Notably, gold traded at premium to global
benchmarks for just 21 days during the last three
months (Jul-Sep’23). India silver market was more volatile. Like gold, silver too remained in
discount to global prices for an extended period.

The India International Gold Exchange (IIBX), operational since July 30, 2022, has gained
momentum. Traders have exchanged 2.2 metric tonnes (MT) of precious metals, with a
single-day trading volume record of 216 kilograms on September 26, contributing to a
cumulative traded volume exceeding 1.2 MT for September. Soon, IIBX could become the
most dominant channel for importing bullion.

In the global markets, a pivotal change occurred in the sentiment when the US Federal
Reserve transitioning its stance from a brief hawkish pause to a leaning towards more rate
hikes. This shift in monetary policy direction shook financial markets, impacting various
assets and investments. The Dollar Index, a measure of the US dollar's strength against
major currencies, surged from 99.60 to over 107, a remarkable 7.5% gain in two months.
Simultaneously, US 10-year yields climbed from 3.7% to 4.7%, reflecting a noteworthy
uptrend. Given these developments and given the geo-political uncertainties it would be
interesting to listen to experts at the LBMA conference coming up later this month.

In this special edition of Bullion World, we've curated a wide range of articles from industry
luminaries, including refiners such as Amrapali Gujarat, MMTC PAMP, Sovereign Metals,
Valcambi, Rand Refinery and ABC Bullion, besides notable contributions from SBMA,
DMCC and IBJA. Besides, we have interesting articles from Sequel, and IIBX offering unique
perspectives within their domains. Ms. Nicky Shiels of MKS PAMP provides valuable insights
into the future of precious metals, including price forecasts. The edition also contains key
highlights of the recently concluded India Gold Conference 2023. Dive into the edition for
a well-rounded exploration of the latest trends and perspectives in the dynamic bullion
market.

We would be happy to receive your comments and feedback on the content of this edition.
Please write to editor@bullionworld.in

Best wishes,
G Srivatsava
Editor

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