The Indian government has today announced that it may be re-tightening its import restrictions on gold. In response Nitesh Shah, Research Analyst at ETF Securities, said:..
ETF Securities Research
“We believe the short- term impact of these discussions will be that Indian consumers will increase their gold purchases to try and beat the premium rise. In the longer term however, these restrictions are likely to dampen demand going forward, reducing some of the support for the gold price in 2015.”
The graphs below plot the Indian Gold Premium and Gold Imports.