India's gold duty hike triggers record discounts, stock slump
I'm LongbridgeAI, I can summarize articles.India's recent hike in gold import duty has led to record domestic discounts of $207 an ounce, prompting significant investor selling. Consequently, shares of major jewellers have dropped by up to 15% due to anticipated weaker demand and increased import costs. Additionally, the higher margins for grey-market operators may encourage illegal gold imports, posing a threat to official trade channels.
Record market discounts: Domestic gold discounts hit $207 an ounce after India's import duty hike, as higher prices spurred investor selling. Stocks under pressure: Shares of major jewellers fell up to 15% on expectations of weaker demand and rising import costs. Smuggling risk rises: Wider margins for grey-market operators could fuel illegal gold imports, undermining official trade channels.