India May Cut Gold Import Duty by 9% to Boost Local Demand

The Indian government is reportedly considering reducing the import duty on gold from its current 15% to 6%. This move could lead to a significant drop in gold prices in the local market, affecting not just gold but also silver. According to reports, India imports around 700-800 tons of gold per year to meet domestic demand.

If the government implements this plan, it is estimated that gold prices could drop by as much as ₹14,000 to ₹17,000 per 10 grams in the Delhi bullion market. Similarly, the price of 22-carat gold could fall by around ₹13,000 to ₹16,000 per 10 grams.

For investors holding gold ETFs, this development may have implications for their investments. Experts suggest that a significant drop in gold prices could be an opportunity for long-term investors to buy gold at lower rates, but they advise caution and recommend considering the market's current situation, risks, and investment goals before making any decisions.