World gold prices are falling

Gold prices fell on the London Stock Exchange to 4-month lows at around $ 1,252 an ounce, while new US data showed the largest economy is contracting faster than analysts predicted earlier this year. US GDP contracted 1 percent in Q1, leading to lower bond yields.

Deutsche Bank analysts say lower US Treasury yields should lead to more favorable gold prices. Silver followed and supported the fall in gold prices, touching its lowest level since July 2013, hitting a three-year low of $ 18.75 an ounce.

Gold prices in India, the largest importer of the metal, fell to an 11-month low of Rs 27,000 per 10 grams last week. Gold imports are likely to fall amid surplus in India. The sharp decline in prices for the yellow metal is due to the fact that the Reserve Bank of India is allowing trading houses to import gold.

According to a recent report, the country imported only 7.9 metric tons (MT) of gold in May 2014, while gold imports in May 2013 totaled 37.62 MT. To date, in the 2013-14 period, only 92 tons of gold have been imported, compared to 193 MT in the same period in 2012-13.

At the same time, imports of silver metal continued to grow. During May 2014, 43.6 tons of white metal were imported. During the period 2013-14, 1425 MT of silver were imported, which was the highest result in the last five years.