Move to raise import duty on gold came as a surprise

By Kishore Narne

The move to raise import duty on gold came as a surprise, which lead to a spike in domestic gold prices which were trading discount to the landed price on the back of lackluster demand in the physical market. Domestic gold prices have risen by 15% since Dec 18 and we continue to hold our bullish view on gold on the back of trade war, falling interest rates and rising geo-political concerns, we expect the domestic prices of gold to close above 36000/10gms by this year end and break 40,000/10gms in 2020.