India and China are the two largest gold-buying countries. The demand from these two countries plays a major role in the overall demand for precious metals. For India, gold imports have fallen 16% in value to ~$2.9 billion in October 2017 compared to $3.5 billion in the corresponding month last year. According to the country’s gold trade officials, the fall in demand in October was mainly because Dusshera, a major Hindu festival, and other religious ceremonies associated with gold-buying took place in September this year. The festivals, which follow the lunar calendar, see remarkable gold buying each year.
Most precious metal mining stocks have seen a downswing in prices over the past week. Top miners Goldcorp (GG)
, Royal Gold (RGLD)
, New Gold (NGD)
, and Sibanye Gold (SBGL)
have fallen 1.1%, 2.2%, 7.3%, and 5.6%, respectively.