Gold shrinks back after break of $1300, India eyed

Ukraine (May  19)  Turmoil in Libya and Ukraine underscored gold buying to start the week but a better tone in stock markets dampened safe haven demand. Another factor was the India election as gold rose on speculation Modi could relax import restrictions.

Gold is nearly flat on the day at $1294 after rising as high as $1305.

India has a 10% on gold shipments and early indications suggest the government will cut the tariff, something that could unleash a torrent of buying from the world’s second-largest consumers after China.