Gold becomes cheaper in India, likely to pick up buying

India i to sleep But due to a substantial reduction in import duty, the prices of the precious metal have come down, which has led to the Hindu festival in the country. Gold ornaments and raw gold The demand is likely to increase.

However, higher demand in India, the world’s second-largest gold buying and selling market, could lift global gold prices, which hit a record high last week. Also, more gold imports India It may also cause a trade deficit of Rs.

Sachin Jain, CEO, Indian Operations, World Gold Council, said: ‘The primary benefit of the reduction in import duty on gold will be to retail consumers.’

India cut import duty on gold from 15 percent to just six percent in July, with the aim of curbing smuggling.

Sachin Jain told Reuters news agency on the sidelines of the India Gold Conference that demand for gold will increase significantly during the upcoming Hindu festivals and wedding season.

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Demand for gold in India is usually high at the end of the year when the country has its traditional wedding season and major festivals including Diwali and Dussehra, and buying gold on this occasion is considered a good omen.

Ajoy Chawla, CEO of the jewelery division, said demand at the retail level has improved since the fall in gold prices due to the duty cut and the momentum is likely to continue in the coming months.

Meanwhile, global gold prices hit a record high last week, but local prices in India were around INR 71,800 per 10 grams on Monday, down from a July high of INR 74,731.

Asher O, managing director of Indian operations at Malabar Gold and Diamonds, said the cut in duty on gold has encouraged retail customers to buy, who were hesitant due to price hikes.

Asher O said that gold prices in the country could have gone above Rs 80,000 per 10 grams had it not been for the duty reduction, but now the prices are steadily decreasing, which will increase demand for the Onam festival next month. There is a possibility of