Gold futures in Mumbai are poised to extend declines to the lowest level since August 2011 as a falling trend channel signals further losses, according to a technical analysis by Motilal Oswal Commodity Broker Pvt.
India, the world’s second-biggest sugar producer, will consider allowing mills to export an additional 1 million metric tons next week to ease a surplus, according to an official with direct knowledge of the matter.
Indian gold funds are shrinking for the first time since June as investors in the biggest bullion- consuming nation follow billionaire George Soros in pulling money from products backed by the precious metal.
India, the world’s largest bullion buyer, should mobilize idle gold lying with its citizens to curb imports and lower a record current-account deficit, according to the All India Gems & Jewellery Trade Federation.
Gold jewelry exports from India, the world’s biggest consumer last year, are poised to surge as the central bank seeks to curtail domestic bullion use and boost shipments to defend a weakening currency, a trade group said.
Monsoon rainfall in India, the world’s second-biggest producer of rice, wheat and sugar, may be more than a 50-year average for a third year, potentially helping the nation curb food prices and sustain exports.