Are the winds of change upon us? “Officials are in discussions to cut a record high import duty on gold and relax rules on exports, government sources said, after the measures helped narrow the country’s trade deficit and now threaten to encourage smuggling,” reports The Economic Times.
“India imposed the curbs last year when overseas gold purchases – the country’s second most expensive import after oil – pushed its current account deficit to a record and undermined the rupee currency.”
“With three duty hikes last year to a record 10 percent and onerous restrictions tying purchases to exports, official arrivals shrank almost 90 percent in the six months to November, helping China displace India as the world’s top gold buyer.”
“The decision to cut the import duty is likely to be taken anytime this month, said one of the government sources, who has direct knowledge of the deliberations but did not want to be named because of the sensitivity of the issue.”
In price news for precious metals…
Prices for US palladium bar saw the biggest increase on the weekly Global Precious Metals MMI® this week, rising 4.0 percent. Chinese palladium bar rose by a slight 2.5 percent. The price of Japanese palladium bar increased by a slight 1.5 percent over the past week.
A 3.6 percent jump caught the week’s heaviest change for US platinum bar. Following a 1.7 percent increase, Chinese platinum bar finished the week. Japanese platinum bar gained a slight 1.1 percent this past week.
US gold bullion rose 2.2 percent over the past week. Chinese gold bullion saw its price rise 2.0 percent over the past week. Indian gold bullion prices ticked up 1.4 percent over the past week. Japanese gold bullion remained essentially flat from the previous week.
Closing at $20.14 per ounce for the week, US silver rose by a slight 1.7 percent. Indian silver gained a slight 1.2 percent this past week. In the past week, Japanese silver saw its price shift up 0.3 percent. Following a 0.1 percent increase, Chinese silver finished the week.
The Global Precious Metals MMI® collects and weights 14 global precious metal price points to provide a unique view into precious metal price trends. For more information on the Global Precious Metals MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.