India Restricts Gold Jewellery Imports To Curb Market Distortions

New Delhi, Jun 12 (KNN) India has moved to restrict imports of certain categories of gold jewellery in a bid to address distortions in the market caused by a surge in inflows fr0m select nations, according to a notification issued by the Directorate General of Foreign Trade (DGFT) on Sunday.

The categories placed under restricted imports include gold studded with pearls, diamonds of two specified headings, other precious and semi-precious stones, as well as gold parts.

The restrictions apply to imports fr0m all countries except the United Arab Emirates, by virtue of the Comprehensive Economic Partnership Agreement between the two nations.

Industry experts cite the abrupt rise in gold jewellery imports fr0m nations like Tanzania and Indonesia as a key factor behind the DGFT's decision, as these inflows were creating imbalances in the domestic market.

The move comes amid volatile gold prices globally, with the precious metal trading nearly unchanged at USD 2,312.69 per ounce as of 0541 GMT on Monday. U.S. gold futures were marginally higher at USD 2,329.3.

Market participants are closely watching the release of U.S. consumer price index data at 1230 GMT and the subsequent Federal Reserve policy announcement for clues on when the central bank may begin cutting interest rates.

Last week, gold prices experienced their steepest daily decline since November 2020, pressured by robust U.S. jobs data and reports that China's central bank was holding off on gold purchases.

Despite prices hovering near record highs reached in May, industry officials report surging demand for gold across Asia, underscoring the metal's enduring appeal in the region.

(KNN Bureau)