Gold price under pressure from high US bond yields in holiday trading week
Gold has gained 27 per cent so far this year.
India’s 30% duty on exports of iron ore levied since December 2011 is staying in place.
Platts News reports India’s finance minister made the announcement presenting the country’s 2013-2014 budget on Thursday.
The tax to discourage exports and a ban on mining in two key producing states Karnataka, Goa and Orissa over corruption and illegal mining will see India ship less than 4 million tonnes this year.
That is down from 120 million tonnes in 2009 and 30 million tonnes last year and the country – once the globe’s third largest exporter – will in fact become a net importer of the steelmaking raw material this year.
India disappearance as an exporter helped the price of ore recover from 3-years lows of $87 set in September to today’s price of just over $150.
But African and Russian miners are jumping to fill that gap and expansion in China, Australia, Brazil is expected to more than make up India’s shortfall.
Image of Meenakshi Temple in Madurai, India by saikop3 – Shutterstock.
