Love for the yellow metal

gold-bars

Last year the Indian government increased the import duty on Gold to 6% from around 1% anticipating a correction on the price thereby curtailing the demand

However, the gold demand went up 41% to 262 tonnes during the October-December quarter as households flocked to buy their favourite precious metal, ignoring the spurt in prices.

The rise in demand poses a fresh policy challenge for the government, which is battling to control gold imports as part of its efforts to keep current account deficit under check.

So far those efforts seems to have failed as India emerged as the fastest growing market and retained its position as the largest market, according to data released by the World Gold Council.

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