Gold demand surges on fears of import duty in budget

Gold demand remained robust in trade today as investors and consumers feared that there would be fresh duties on gold to curb their imports.

Import of gold is one of the highest after oil and the government wants to curb imports, which is putting pressure on the trade deficit and hence the current account deficit. This in turn has put pressure on the Indian rupee.

The government already raised duty to 6 percent from 4 percent on January 21. The April contracts on the MCS was last trading at Rs 29889, though the dip was largely due to the climbing rupee.

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