The crackdown on Rs 500 and Rs 1000 denomination notes has led to a sudden surge in demand for gold. People having huge stash of unaccounted cash are trying to convert their wealth into gold as they fear scrutiny by the tax department if the cash is deposited in banks.
The bullion industry expects the government to cut the record 10 percent import duty on gold in the annual budget for 2016/17 that will be presented on Feb. 29, potentially boosting supply and driving domestic prices lower.
Gold traders in India are wary of fresh deals on Monday as prices touched to a one-month high. It hit Rs 27,180 per 10 grams. Global gold rose 1.7 percent to a one-month high as technical buying after US dollar slipped.
Gold traders stayed away as prices consolidated in the vicinity of their highest level in three weeks. India's gold imports fell 81 percent in June from the previous month on the back of raised import duty and stoppage of consignment imports.
Reacting to raids by tax inspectors at RiddhiSiddhi Bullions, Bombay Bullion Association said that such raids are tarnishing the image of India's gold industry.
Gold traders in India refrained from placing new orders as prices steadied near their two-week high, and premiums also came off from their highest level in more than 2 years with supplies rising.
Gold traders in India sought price direction ahead of an outcome of a key US Federal Reserve policy meeting as prices were steady for the second session, near their highest level in a week struck on Monday.
Gold traders in India, the world's biggest consumer of the yellow metal, stayed on the sidelines on Wednesday as prices recovered from the previous session's one-week low, with a weaker rupee also hurting, dealers said.
Gold traders refrained from taking new positions on Monday despite the peak buying season, as the rupee's fall to a three-month low negated a price drop in the overseas market, dealers said.
Gold traders in India, the world's biggest buyer of the yellow metal, refrained from taking fresh positions ahead of key festivals as prices hovered close to their highest level in seven weeks, dealers said.
Gold traders in India, the world's biggest buyers of the yellow metal, stocked up for upcoming key festivals and the ongoing wedding season as prices extended losses for the second straight session.
Gold traders in India, the world's largest consumer of the yellow metal, booked stray deals after a three-week long strike, seeking to replenish stocks for a gold buying festival slated later in the month, dealers said.
India gold recovered a tad on Thursday afternoon, moving away from from its lowest level in 10 weeks, but physical buying retrated as traders were unwilling to place fresh deals hoping for larger falls ahead, dealers said.
India's gold buying continued on Monday afternoon after prices fell 1.8% in the previous week, as traders sought to stock in anticipation of the upcoming harvest festival and on wedding demand, dealers said.