Tax cut sharply pushes gold demand in India higher

Commodity researcher Carsten Fritsch reports that there is currently a noticeable upsurge in the demand for gold in India. The desire for gold intensifies. The demand for gold in India has significantly increased as a result of the removal of the import tax on the metal and the subsequent drop in local gold prices to a 4-month low.

Consequently, the price premiums that Indian dealers seek over the official domestic pricing have increased to as much as USD 20 per troy ounce, including the import and sales taxes that need to be paid.

This is the greatest level in ten years, reports Reuters. Prior to the tax decrease last week, they continued to give discounts of up to $65, which had been the most in 28 months. Local gold prices in other Asian nations, however, are less volatile.

Dealer discounts in China range from a premium of $2 to a discount of $10, which is still quite near to a two-year low when compared to the level of the worldwide market. This suggests that demand is still quite low. Gold was sold for $3 less in Japan than it was in Singapore and Hong Kong, where it was either somewhat more expensive or less expensive.