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According to Kitco News, the Indian government has made the surprise move of dropping its 80:20 gold import rule. While the change is certainly good news for gold bugs, some analysts have said it won’t bring major changes to the market.
According to Kitco News, the Indian government has made the surprise move of dropping its 80:20 gold import rule. While the change is certainly good news for gold bugs, some analysts have said it won’t bring major changes to the market.
As quoted in the publication:
On Friday, the Indian government removed its current 80:20 import rule, which said that 20% of all imported gold had to be mandatorily exported before any new shipments could be brought in. Analysts have pointed out that the news is a surprise because recently there was speculation that the government would tighten import rules.
Although the 80:20 rule was curtained, the government did not mention whether it will reduce the 10% duty on all gold imports.
Bart Melek, head of commodity strategy at TD securities, told the news outlet:
On the margins it’s positive for gold but I don’t see it as a game changer.
