Rise in India import duty on Gold may further weaken Gold

Gold imports were recorded at 162 tons in May and import bill rose to a staggering $15 bn in the past two months prompting government and the RBI to go for drastic measures. The increase in import duty comes a day after the Indian central bank acted to force domestic jewellers to buy only on a cash basis.

MUMBAI (Commodity Online): With the government decision to raise import duty of gold from six to eight percent, apart from other measures recently adopted by the Reserve Bank of India, gold prices are set to weaken further in an already bearish market, analysts said.
The import duty was raised three times in recent years and second hike in six months to curb the import of the yellow metal wich is adversely impacting the growth of Current Account Deficit(CAD).
Gold imports were recorded at 162 tons in May and import bill rose to a staggering $15 bn in the past two months prompting government and the RBI to go for drastic measures. The increase in import duty comes a day after the Indian central bank acted to force domestic jewellers to buy only on a cash basis. Read more.. http://goo.gl/fEHRS

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