The value of gold, the note said, is only 60 - 70 per cent of the jewellery purchase price. The weak performance of diamonds, which form a meaningful part of the jewellery purchase price, caps gains.
As gold prices soar to new heights, a study on Wednesday made a case for a comprehensive policy for the yellow metal as India is one of the world's largest bullion markets, influenced by a cultural affinity for the shiny metal and investment demand. Gold price has been reaching new heights driven by geo-political tensions, economic uncertainty, and a weakening US dollar, said the report titled 'Coming Of (A Turbulent) Age: The Great Global Gold Rush' by the State Bank of India's Economic Research Department. The year-to-date price has increased by over 50 per cent in 2025. The price came down to below USD 4,000 per ounce for a few days in October, but again moved above USD 4,000/oz in November. The report noted that the domestic supply of gold is only a fraction of the total gold supply in India, with imports contributing around 86 per cent of the total supply in 2024 as per the World Gold Council estimate. India is one of the largest gold markets, influenced by cultural affinity f
Gold rate today: Donald Trump coming to power is likely to heighten the Sino-US trade tensions, which would be positive for gold
The policy is aimed at promoting growth of the yellow metal industry and exports of jewellery
The industry should not be overregulated in the name of developing it or curbing black money
The domestic industry has demanded a cut in import duty on gold to 4% from the current 10%
Finance Minister Arun Jaitley has announced the formulation of a comprehensive gold policy to develop the yellow metal as an asset class
The government last week announced an array of steps to rein in CAD and the rupee
Sources said another reason is that the Watal report advocates less of regulatory restriction on the jewellery industry
The proposed policy is to address the issues of transparency in gold and jewellery retailing, hallmarking and financing against gold
Gold policy is working to convert the precious metal into a financial asset; unified national rate of gold on the cards
Banks want to participate in gold options, spot exchange
Aims to ensure higher level of transparency
The plans should be finalised by the end of March, said sources