The increase in import duty on precious metals is a part of a broader strategy aimed at conserving foreign exchange, protecting the current account, prioritising essential imports, and strengthening India’s economic resilience in the face of evolving global uncertainties, government sources said on Wednesday.
Stock markets across Asia posted strong gains while crude prices slipped sharply after a temporary truce between the US and Iran signalled easing tensions in the Middle East.
Gold and silver prices went up on Friday after a mild dip in the previous session, driven by conflict in the Middle East and a softer dollar.
Spot gold was up 1.35% at USD 5,348.49 an ounce as of 2316 GMT, while US gold futures climbed 2.2% to USD 5,362.30 per ounce. The rally underscores investor flight to safety amid rising geopolitical risks.
In the September quarter, the share of total consumption of gold spiked to an all-time high as the World Gold Council (WGC) said that the rising gold prices are spurring Indian investors to buy bars and coins, with record purchases worth $10 billion.
Axis Securities maintained a bullish outlook on gold as global cues from softening US yields and sustained central bank buying to geopolitical tensions continue to strengthen the metal’s safe-haven appeal.
Gold prices in India on Tuesday surged to an unprecedented Rs 1.10 lakh per 10 grams in line with international market trends. Investors flocked to safe-haven assets amid economic uncertainty and a weaker US dollar.
In the international market, spot gold was up 0.2 per cent at $2,283.76 per ounce in morning trade after touching an all-time high of $2,288.09 earlier in the session.
The yellow metal has multiple significance like religious connotations, family heirloom, gifts, status symbol, investment among other purposes.
The decision to introduce a uniform price on 916 purity 22-carat gold has been taken at a meeting between officials of Malabar Gold and Diamonds, one of the largest gold and diamond retail chains in the country, and key members of All Kerala Gold and Silver Merchants Association which sets the board rate for gold.
