Indian Government May Curb Gold Imports

The Financial Times reported that the Indian government is considering cracking down on gold imports in an effort to reign in the country’s trade deficit.

As quoted in the market news:

The move comes as imports of the yellow metal begin to tick up. Official data released this week show gold imports reached 106.3 tonnes, or $4.2bn, this October, almost four times the shipments in the same period a year earlier.

The festive period in India, which centres around the celebration of Diwali last month, is peak season for the gold industry. And demand is expected to remain strong in the coming quarter as the wedding season gets into full swing.

‘The last couple of months the imports have jumped significantly and that is again causing panic,’ says Kishore Narne, commodities analyst at Motilal Oswal, a Mumbai-based brokerage.

Click here to read the full Financial Times report.