Gold slips as India raises import tax
Gold has lost marginal ground as India ups its import tax.
Gold has slipped in commodities trading this afternoon (January 21st), as India raises its gold import tax in order to tackle its trade deficit.
The country – which is the largest importer of the metal in the world – has increased its duties to bring in the precious substance, raising it from four per cent to six per cent.
This is just one year after doubling it from two per cent to four per cent.
Last year's gold import duty increase had only a temporary impact on demand, while some analysts said the latest move will not have much effect either.
India's government wants to curb imports of the yellow metal in a bid to help it reduce the country's account deficit, which peaked at 5.4 per cent of total economic output between July and September 2012.
At 16:44 GMT, Forex Gold slipped by 0.1 per cent to $1687.50 per ounce.
Find the latest spread betting strategies for the commodities market at City Index.
Latest market news
Today 11:14 AM
Today 08:28 AM
Yesterday 03:30 PM