Gold import duty hike may weaken precious metal demand; MCX Gold August may decline to Rs 51400 per 10 gram
时间:2024-09-29 02:21:54 阅读(143)
By Jigar Trivedi
The Indian government has raised the import tax on gold from 7.5% to 12.5%. The step has been taken in an effort to curb imports, as the rupee slid to a record low. India had imported the most amount of gold in a decade last year, as demand revived after the pandemic. India’s current account deficit at 3 year high level. This is majorly due to oil and gold imports. Crude oil is an essential commodity which we have to keep on buying. Gold is looked at from an investment point of view, not a need but, it can be controlled. Indians consider gold jewellery to be auspicious and a store of value, and the nation relies entirely on bullion imports to meet demand.
USDINR has declined by 6% year to date due to double deficit , capital account due to FII exits and current account due to high import bill. We don’t expect this step to help the rupee significantly. We may see 81 rupee a dollar soon. The tax increase could weaken gold demand and comes as investors in bullion-backed exchange traded funds have been selling their holdings. Unless there is a reversal of ETF flows, the gold price will likely find it difficult to recover.
MCX Gold has gained more than 2.50% at the opening trade but owing to pressure in the international Gold which is trading below $1790/oz, prices may cool down on the MCX too. MCX Gold August may decline to Rs. 51,400 / 10 gram.
(Jigar Trivedi – Research Analyst – Commodities & Currencies Fundamental, Anand Rathi Shares & Stock Brokers. The views expressed are the author’s own)
上一篇:Gold Prices Are Rising- Should you buy now or wait-
下一篇:Year Ahead- Lower interest rates may buoy affordable housing in 2024
猜你喜欢
- Govt to procure tur dal above MSP to build buffer
- Gold to remain volatile next week amid US CPI inflation, Fed meet outcome; book profit before important data
- Markets Wrap – Fri, 16 Dec ‘22- Stocks dip, rupee falls; Asia, Europe markets, Gold, Crude, Crypto updates
- Gold Price Today, 9 May- Gold to be range-bound; investors eye US CPI for rate hike clues
- Markets Wrap Up – 13 December- Stocks climb, rupee slips; Asia, Europe markets, Gold, Crude, Crypto updates
- Mid-, small-cap indices miss the recent rally
- Markets Wrap – Fri, 13 Jan ‘23- Stocks rise, rupee appreciates; Asia, Europe markets, Gold, Crude, Crypto updates
- Markets Wrap – Wed, 15 Mar ‘23- Nifty, Sensex tumble, rupee falls; Asia, US markets, Gold, Crude updates
- Markets surge 900 points on Fed stance, Adani deal; Most Asian markets end week on high note