India’s Ministry of Finance may announce measures to restrict gold imports, possibly as early as Tuesday, says Commerzbank. Citing industry sources, the bank says the Reserve Bank of India is strongly supportive of new import restrictions following news that the value of gold imports in October soared by 280% year-on-year to $4.2 billion. “That said, this is partly due to a base effect. Any further limitation of gold imports would probably also lead to increased smuggling, which cannot be the Indian government’s intention. In addition, Indian jewelry retailers could increasingly resort to silver,” Commerzbank says.
