The Director General of Foreign trade (DGFT) has put import of gold jewellery of certain types under restricted category, according to a notification issued by the foreign trade body on June 11.
The following categories have been put under restricted imports: gold studded with pearls, gold studded with diamonds of two categories of heading, gold studded with other precious and semi-precious stones, and gold parts.
The restriction will be applicable on the imports of the above-mentioned types of jewellery from all the countries, except from the UAE under Comprehensive Economic Partnership Agreement (CEPA) between the two countries, according to the DGFT notification.
Experts are citing the sudden rise in imports from countries like Tanzania and Indonesia as one of the reasons behind DGFT's decision, as these imports were creating distortion in the market.
Gold prices have been under pressure in the last few days as investors US May inflation report set to be out later in the day and the Federal Reserve's policy announcement for insight into how soon it will cut interest rates.
Spot gold was almost unchanged at $2,312.69 per ounce, as of 0541 GMT. US gold futures edged up 0.1 percent to $2,329.3.
Investors will assess the inflation situation when US consumer price index numbers are released at 1230 GMT, just before the Fed concludes its two-day policy meeting.
Strong US jobs data and reports of China's central bank holding off gold purchases triggered bullion's biggest daily drop since November 2020 last week.
However, demand for gold in Asia is surging despite prices hovering near the record highs it hit in May, industry officials said.
With inputs from Reuters
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