Gold premiums in India, the world's biggest buyer of the metal, jumped sharply this week as the festive season began, driving up demand, and supply remained tight.
The gold market has remained under pressure.
The rise was due to a sharp fall in prices, which spurred demand.
India will also launch a sovereign gold bond to lower physical demand.
Buying had been muted in the past few weeks.
The Modi government's decision to demonetise Rs 500 and Rs 1,000 banknotes will drive up interest in the bullion market
This Vikram Samvat year 2070, ending on Thursday, has proved the worst in 17 years in terms of return on investment in gold.
While an import duty is ruled out, a small excise duty on jewellery manufacturing can be on the cards.
Marriage season will end in the next two months and import growth is likely to taper off
Gold import in the December quarter is estimated to come down.
Traders have used this as an opportunity to stock up silver.
Non-resident Indians are bringing gold into the country by taking advantage of rules that allow each individual to carry 1 kg of the metal, helping traders cope with restrictions on imports during the peak wedding season.
Those selling ornaments with lower purity might now offer hefty discounts in order to get rid of non-hallmarked stocks
By December 2015, the total imports will touch 1000 tonnes.
The price of gold in India seems to have bottomed out.
Gold import this financial year is estimated at 945 tonnes.
Imports in 2016 expected to be lowest in 7 years but experts don't rule out a revival in demand if the yellow metal's price falls
In the second half of April, the discount on gold came down to $3 an ounce.
In a first for India, bullion derivatives contracts will be settled on a blockchain platform. This will help in global acceptance of gold refined by Indian bullion refineries, giving a fillip to the local industry, exports, as well as investments. From November 1, the National Stock Exchange (NSE) will accept gold delivery only on the blockchain platform.
Veterans recall they haven't seen gold falling for 3 years in a row.
For the year as a whole the price is expected to average $1,270, which compares with the year-to-date average of $1,289.
BSE proposes two models for making gold trading and investment transparent
November IIP data show a fall of over 20%, led by automobiles, gems & jewellery and home appliances; turnaround seen as unlikely.
Recent recovery in the white metal was reflected in a falling gold to silver price ratio.
Good monsoon, farm loan waiver -- the two key reasons behind more customers in jewellery shops
Silver is emerging as a stronger bet for the long-term.
Based on the estimate, a courier bringing in 1 kg of gold currently worth around $40,000 at world prices could earn $470 if not caught.
Experts advise investors to buy at lower levels in the next few months and sell at the higher end of their range in the second half, reports Rajesh Bhayani.
Report says gold being exported by persons of Indian origin and routed through Dubai
Key to Modi's plan will be the interest rates offered for gold deposits.
From farmers to cement, steel, logistics, transportation and automobiles, the back-end is struggling to get going due to the liquidity crisis.
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