Record imports of gold by India show the central bank may be losing the battle to tame inflation , spurring investors to sell government bonds.
India’s Kingfisher Airlines Ltd. escaped collapse in 2010 by restructuring 77.2 billion rupees ($1.4 billion) of debt it had run up buying airlines and adding routes amid the nation’s economic boom.
Gold, headed for a 10th annual gain, may reach at least $1,300 an ounce this year as investors seek a shield against financial turmoil, weak currencies and inflation, according to GFMS Ltd .
Gold rebounded, paring a weekly loss, as expectations of further stimulus in the U.S. stoked demand for safer assets.
Gold jewelers in India, the world’s biggest bullion buyer, will extend the first nationwide strike in seven years for two more days to demand withdrawal of some levies, a trade group said.
"The industry is really going through a rough phase right now after what happened last year. Confidence has been lost and a lot of industry veterans have left the market."
- Kunal Shah on Aug 18, 2014