bullion

India holds one of the world’s largest privately owned stocks of gold. bullion exchanges can be a strong pillar to invite that gold sitting idle in cupboards.

Facing a widening trade deficit, India's Prime Minister urges reduced gold purchases. Industry bodies propose tapping into the nation's vast household gold reserves. Their plan involves using refined household gold for domestic demand and channeling imported gold into jewellery exports via gold metal loans, aiming to boost working capital and cut imports.

India has significantly increased import tariffs on gold and silver to 15% from 6% to curb imports and protect foreign exchange reserves. This move follows Prime Minister Modi's appeal for citizens to avoid gold purchases for a year, aiming to narrow the trade deficit and support the rupee amid global economic pressures.

India's jewellery industry urges against curbing gold purchases, emphasizing its cultural significance as savings and tradition. Instead, they propose enhanced gold recycling and domestic mobilization to ease foreign exchange pressure. This approach aims to protect millions of livelihoods tied to the sector, from artisans to small businesses, by circulating existing gold rather than stifling demand.

Gold and silver prices are expected to trade within a narrow band this week, with investors closely watching US-Iran peace talks and key global economic data. Analysts noted that while gold's momentum appears steady, silver shows positive movement. Geopolitical tensions and central bank buying are also influencing precious metal markets.

Prime Minister Modi urged Indians to halt gold purchases for a year to protect foreign exchange reserves, a call supported by GTRI which highlighted a surge in gold imports straining the trade balance. Union Minister Ashwini Vaishnaw echoed the appeal, emphasizing reduced import spending amid Middle East conflict, leading to a sell-off in jewellery stocks.

Prime Minister Modi's appeal to curb gold purchases amid global economic uncertainty has sparked anxiety among Ranchi's jewellers during the peak wedding season. The statement, aimed at conserving foreign exchange, is feared to impact customer sentiment and the livelihoods of artisans and workers in the local bullion market.