13
January
Gold Shows Central Bank Losing Inflation Battle: India Credit
13 January 2011 Business Week
Record imports of gold by India show the central bank may be losing the battle to tame inflation, spurring investors to sell government bonds.
Shipments into Asia’s third-biggest economy may have increased to 800 metric tons from 557 tons in 2009 and exceeding the previous all-time high of 769 in 2007, according to Ajay Mitra, managing director for India and the Middle East at the World Gold Council. Mumbai-based brokerage Nirmal Bang Commodities Pvt. forecasts purchases from overseas markets may rise to as much as 810 tons this year.
