Daily Gold Market Report

Surge in Silver:
India’s Imports Hit Record Levels with Increased Demand from UAE

(USAGOLD – 4/10/2024) Gold prices are lower in early trading Wednesday and sold off over 1% following another U.S. inflation report that came in higher than expected. Gold is trading at $2327.87, down $24.91. Silver is trading at $27.70, down 45 cents. In February 2024, India’s silver imports reached a record high, with a 260% increase compared to the previous month, largely due to lower import duties and significant purchases from the UAE. The country, which is the world’s largest silver consumer, imported 2,295 metric tons of silver in February alone, with 939 tons coming from the UAE. This surge in imports is expected to contribute to a 66% increase in silver imports for the year, potentially supporting global silver prices. The high volume of imports in early 2024 has led to an oversupply that pushed local prices into a discount, causing banks to reduce imports in March. Industry experts suggest that the cyclical nature of India’s silver imports, which saw a decline in 2023 after a record high in 2022, indicates a potential increase in 2024, with estimates reaching 6,000 tons. This demand is driven by the fabrication and solar industries, as well as investment purposes, with silver being seen as potentially offering higher returns than gold.