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Gold imports to India surge

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(Kitco News) - Gold imports to India in June nearly trebled from year-ago levels due to the correction in prices and as jewelers replenished inventories after robust sales during a key festival, a government source said on Tuesday (Reuters report).

India raises the import duty on bullion to 12.5% from 7.5% earlier. The duty hike should lift prices and moderate demand in India, which could weigh on global prices. But it could stoke under-the-counter buying and drive-up precious metal smuggling into the country.

India imported 49 tonnes of gold in June, compared with 17 tonnes a year earlier, the source said on condition of anonymity as he is not authorized to speak to the media.

In value terms, June imports surged to $2.61 billion from $969 million a year ago, he said, adding that India’s gold imports still dropped to 335 tonnes in the first half of 2022 from 493 tonnes last year.

Gold is currently hovering around the $1800/oz area on Tuesday despite persistent U.S. dollar strength. There is a big support at $1787.03/oz which is the consolidation low.

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