The finance ministry is considering raising import duty on gold by two percentage points to six per cent, as the surge in demand for the yellow metal threatens to further widen India's current account deficit.
Gold prices rose on the bullion market in New Delhi on Monday on emergence of buying by investors amid purchasing by stockists, as funds got diverted from falling equity markets.
An alert has been issued by the Directorate of Revenue Intelligence, lead agency to check smuggling and customs duty evasion, to all international transit points across the country, official sources said.
Surging gold prices set yet another record of Rs 15,800 per 10 gram in the national capital on Thursday in line with the surging global bullion markets on speculation that the global recession will deepen further.
The retailers are also mulling putting a stop to selling of gold coins and gold bars to curtail investments made in gold, according to an official of trade body All India Gems and Jewellery Trade Federation.
The duty, which is charged at the rate of 10 per cent, is payable in currency of the nation where the gold was bought.
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Men's compound trio of Rajat Chauhan, Ritul Chatterjee and Chittibomma Jignas ensured India another gold medal after the fancied recurve archers flopped in the first Asian Grand Prix that concluded in Bangkok.
Govt measures, rupee movements to determine domestic levels
Around Diwali, the premiums had gone up to as much as 3.5 per cent.
The Association of Gold Loan Companies on Monday said it had advised members to reduce their maximum lending rate following the decline in the price of the yellow metal.
In domestic market, gold prices had peaked to Rs 39,011 per 10 grams in September and are now ruling at Rs 38,800 per 10 gram.
With gold prices touching their all-time high on Wednesday, jewellery majors were taking measures to attract more consumers. These included more category launches, lower-weight jewellery and store expansion, among others.
Surging capital markets in India are turning investors away from the bullion market to attractive stocks. This has resulted in the fall of gold prices on lack of buying supporters.
At present, it is trading at around $1,004 an ounce in the international market, about $150 cheaper than gold
The duo clinched their second gold medal in archery at the Asian Games.
British Geological Survey accessed in September 2011 produced a list of countries by production of gold.
In the current scenario, it's hard to construct a comprehensive argument that gold prices should rally, or one that they should decline - the range-trading of recent months may continue.
With import duty on gold raised to 8 per cent, smugglers are back at work.
Gold has been glittering bright for investors for many years, but the year 2012 saw Indian equities overshadow the yellow metal's sheen with returns of more than 25 per cent.
Shreyasi Singh and Sushma Singh bagged gold medal in women's double trap and sports pistol events, respectively, while Sushil Ghaley clinched the yellow metal in men's rifle in New Delhi on Monday.
The upsurge was further supported by a firming global trend.
Neeraj Chopra created history on August, becoming the first Indian to win a gold in track and field at the Olympics. He threw the javelin to a distance of 87.58m to pick the yellow metal at the Tokyo Games. The 23-year-old athlete is only behind German athlete Johannes Vetter who has a 1396 score as per the latest update issued by World Athletics.
Elated at becoming the first Indian male shuttler to win a gold at the Commonwealth Games in 32 years, Parupalli Kashyap has said his childhood dream of bagging a yellow metal for the country has finally come true.
Indian boxer L Devendro Singh (49kg) advanced to the quarter-finals with a hard-fought victory but reigning Asian champion Shiva Thapa was sent packing in the 56kg category, at the 2014 Commonwealth Games in Glasgow.
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Besides being an investment instrument, it is hedge against inflation and store of value.
FM feels it will help to bring down imports.
Rising gold prices and continuing investment flow in yellow metal has pushed the size of assets held through gold exchange traded funds to an all-time high of Rs 11,198 crore.
Gold exchange traded funds (ETFs) witnessed a net outflow of Rs 199 crore in January, making it the third monthly withdrawal in a row, with investors preferring equities over other segments on buoyant record SIP flow. This was in comparison to a net outflow of Rs 273 crore registered in the segment in December and Rs 195 crore in November. Prior to that, Gold ETFs attracted Rs 147 crore in October, data with Association of Mutual Funds in India (Amfi) showed.
As per a data released on Monday by the government, gold and silver imports during April jumped by 138 per cent to $7.5 billion against $3.1 billion in the year-ago period.
Tamil Nadu, Karnataka, Kerala and Maharashtra post offices followed Bihar.
China produced the most gold in world in 2012, making it the largest producer for the sixth straight year even as it remained the second largest consumer of the yellow metal after India.
Respect the yellow metal's breakout but treat it with more than ordinary caution, says Sonali Ranade
Finally, gold prices have started heading south this week. Prices of yellow metal tumbled to an eight-month low of Rs 8,600 per 10 gm
Sushil Kumar made a glorious return to the international arena by clinching a gold medal at the Commonwealth Wrestling Championships in Johannesburg, South Africa on Sunday.
Bikash Mohapatra digs out athletes who have given their nations a solitary golden moment at the Olympics.
Will gold touch the psychological barrier of $720? Investment funds are bullish but cautious.
Gold prices are again moving up after a downward slide. But will this upward movement sustain? More importantly, should you buy more of the yellow metal now? Here's the answer.
