Gold prices in India now at par with global levels: World Gold Council executive

Gold prices in India are now nearly at par with global levels after the recent government policy changes that have reduced arbitrage and curbed smuggling, a senior executive from the World Gold Council (WGC) said.

"This not only prevents GST losses but also ensures fair competition for organised players. Now, gold prices in India are almost at par with global levels, making the market more transparent and competitive."

According to commerce ministry data, India's gold imports in November reached a record high of $14.86 billion, a four-fold increase, mainly on account of festival and wedding demands. The gold imports rose 49% to $49 billion during April-November period this fiscal as against $32.93 billion in the same period last fiscal year.

"Jewellery demand globally has been declining, but India’s market experienced a unique turnaround. Initially, demand slumped in Q2 (April to June) due to high prices, but it picked up significantly after a reduction in customs duty announced by the finance minister," Jain said.

He projected robust gold consumption in India, with demand expected to range between 700-800 tonnes for the year, supported by investment and jewellery purchases.