India Scraps 80:20 Gold Import Rule

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.

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