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

Upstox
By Upstox News Desk

2 min read | Updated on December 17, 2024, 12:40 IST

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SUMMARY

Gold prices in India: India’s gold imports surged to $14.86 billion in November, marking a four-fold increase, while yearly demand is projected at 700-800 tonnes, supported by investments and jewellery purchases.

According to the commerce ministry, gold is one of the best-performing assets in 2024 (till November).

According to the commerce ministry, gold is one of the best-performing assets in 2024 (till November).

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.

In an interview with Business Today, Sachin Jain, Regional CEO-India at WGC, said that reforms in gold taxation have ensured greater transparency and fair competition in the domestic market. In the Budget, the government slashed the duty from 15% to 6%.
When asked about the impact of the change in custom rates on the gold prices, Jain was quoted as saying, "The recent changes in gold taxation by the government have been transformative. By reducing the arbitrage between domestic and international gold prices, the government has significantly curbed smuggling."

"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."

Gold prices have increased around 23% this year to Rs 78,350 per 10 gm in the national capital. With the Reserve Bank of India purchasing an average of 17 tonnes of gold per quarter, Jain said the central bank purchases have been a key driver for gold prices this year.

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.

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Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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