Gold Focus: Items tagged with "gold demand"

Loading content...

Mukesh Kumar
Market Intelligence Group
World Gold Council

Higher prices and custom duty dampened Indian demand in July

  • Indian gold imports reached just 37.7t in July 2019 – 49% lower than the same month last year 
  • The domestic gold price was 2.3% higher in July compared to June; 23% higher y-t-d
  • The custom duty on gold was unexpectedly raised by 2.5% in the Union Budget on 5th July
  • With elevated domestic gold prices and a higher custom duty, the discount in the local gold market reached a peak of US$28/oz in July
  • Volatile prices and weak physical demand encouraged healthy gold futures trading on MCX: volumes touched a high of 46.8t in July
Mukesh Kumar
Market Intelligence Group
World Gold Council

India’s gold import duties rise


  • On 6th July, India’s gold import duty increased from 10% to 12.5% as part of a revenue-raising budget
  • We believe it will have a negligible long-term effect on gold demand
  • We think it may be a temporary measure: when the government’s books are in better shape we may see some of these tax increases rolled back
  • The market will be supported by other government initiatives, including the structural reforms such as the India Gold Spot Exchange and plans to boost rural incomes