Weekly Gold Review: Local Futures Surge As India Raises Import Duty

2 Jul 2022 , 12:36 PM

COMEX Gold slumped to six-week low near $1800 per ounce on sustained selling pressure as worries over global monetary tightening and lack of retail demand in India weighed. The US Federal Reserve Chairman Jerome Powell told lawmakers on Thursday that aggressive interest rate hikes designed to tame inflation could lift unemployment on Main Street. However, MCX Gold hit above Rs 52000 per 10 grams mark following a wild rally in first hour of trade as India raised the import duty on the yellow metal. In order to curb strain on trade deficit, the government has raised the basic import tax on gold to 12.5 per cent from 7.5 per cent, media reports noted. Including the agriculture infrastructure development cess (AIDC) of 2.5% the effective gold customs duty will be 15%. Indias Gold imports came in at Rs 46591 crores in May 2022, jumping 838% compared to May 2021. Gold imports in April-May FY23 rose by 16% compared to same period in previous fiscal. MCX Gold trades up 2.66% at Rs 51860 per 10 grams.Powered by Commodity Insights