The July Budget made two changes in the treatment of gold that affect investment portfolios. The reduction in import duties to 6 per cent from 15 per cent in the latest Budget lowers input costs for jewellers and compresses margins for smugglers. The July Budget also implies a cut in the issuance of sovereign gold bonds (SGBs). It targets a gross issuance of Rs 18,500 crore of SGBs in FY25, which is considerably lower than projections of Rs 29,638 crore of gross issuances in the Interim Budget.
Gold is a traditional haven in times of crisis and a