- The high import duty and supply curbs on gold imposed to reduce the current account deficit has had a substantial effect its demand as it slid by 26%, value terms reduced by 33% and dollar terms by 41%, besides a reduction in jewellery demand and investment demands in the first quarter.
- The new govt is expected to lift the curbs leading to a reduction in the prevailing premium.
- Global gold demand was also lower in Q1. While total global jewellery demand increased, investment demand slid.
- Consistency of long term underpinning of the gold market, such as jewellery demand, demonstrates the robust and unique nature of the gold market, which rebalances to reflect demand.
- Read at: http://www.thehindu.com/todays-paper/tp-business/import-curbs-high-duty-trigger-slide-in-gold-demand/article6031278.ece
Exams Perspective:
- Bullion
- Stock Market
- CAD
- Smuggling
