India’s budget for FY18/19, released yesterday, was a mixed bag for gold. On the one hand, incomeboosting measures for the rural population are good news for jewellery demand. On the other hand, the budget has made it more costly to import gold. On balance, we think that the budget will support India’s gold consumption but we doubt this will be enough to offset lower demand elsewhere. As such, we still expect the price of gold to fall in 2018.
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