Friday, January 24, 2014

Gold spikes on calls for easing of Indian import restrictions

Gold spiked 2% overnight on some technical reversals but more importantly on the back of news out of India that Congress party chief Sonia Gandhi has called for a review of India's import restrictions on gold.


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Congress party chief Sonia Gandhi has asked the government to review tough import restrictions on gold, which include a record 10 percent import duty, a television channel and a news website said on Thursday.

Her intervention is likely to create pressure for an easing of rules that have hammered the bullion industry and brought a surge in smuggling, but the finance minister said the curbs would not be rolled back anytime soon.

India used to be the world's biggest buyer of bullion until the government and central bank stepped in last year with import curbs aimed at reducing a record current-account deficit.

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