India’s gold market has suddenly turned volatile after the government’s latest decision to sharply increase import duty on gold and silver imports ⚠️. The move has not only pushed domestic gold prices higher but also created panic among buyers and investors across the country.
This week, gold dealers in India were forced to offer record discounts of up to $207 per ounce 💸 over official domestic prices. Just a week ago, discounts were much lower, showing how quickly the market situation changed after the tax hike announcement.
The Indian government recently increased import tariffs on gold and silver from 6% to 15% 📊. Along with this, new restrictions were introduced on duty-free gold imports used for jewellery exports. Under the revised rules, imports are now capped at 100 kilograms per licence.
As prices jumped sharply 📈, many jewellery buyers decided to postpone purchases, while investors started selling their existing gold holdings to lock in profits 💰. According to bullion traders, this sudden increase in selling pressure also boosted scrap gold supply in the market, leading to unusually high discounts.
Domestic gold prices in India climbed to nearly ₹1,64,497 per 10 grams 🪙 earlier this week before settling around ₹1,60,500 on Friday. The rapid rise in prices weakened retail demand significantly.
While India’s market struggled 📉, China’s gold demand remained strong 🇨🇳💎. Gold premiums in China stayed firm between $15 and $20 per ounce due to steady investment demand and aggressive industrial buying from sectors like solar energy ☀️ and electronics manufacturing 🔋.
Market analysts believe China’s strong buying interest could help balance the temporary slowdown in India’s demand after the policy changes.
Globally, spot gold prices also slipped nearly 2.8% this week 📉. Rising energy prices increased inflation concerns and strengthened expectations that global interest rates could remain high for a longer period 🌍💹. This added further pressure to the international gold market.
Key Highlights ⚡
- ✅ India increases gold & silver import duty from 6% to 15% 📈
- ✅ Gold discounts jump to record $207 per ounce 💸
- ✅ Domestic gold prices cross ₹1.64 lakh per 10 grams 🪙
- ✅ Jewellery demand weakens sharply in India 📉
- ✅ Investors rush to sell gold after price surge 💰
- ✅ China’s gold premiums remain stable due to strong demand 🇨🇳💎
