The import duty on gold has been changed to two percent of value from an earlier flat 300 Rupees per 10 grams, the Indian government said. India is the world's largest importer of bullion.
Moreover, the import duty on silver has been changed to six per cent of value from an earlier rate of 1,500 rupees per kilogram, the government added.
The alterations may double the import duties on both the precious metals. The import duty on gold may amount to about 570 rupees per 10 grams, while that on silver may translate to 3,000 Rupees per kg at current prices, the Bombay Bullion Association said.
Gold prices rose on Tuesday following the duty hike. At the Multi-Commodity Exchange, the price of the February 2012 contract rose as much as 1.03 per cent at Rs 27,789 per 10 grams on Tuesday.
Meanwhile, Credit Suisse cut its forecast for gold prices in 2012 to USD 1,755 per ounce to USD 1,850 per ounce amid robust gold production and slowing global growth. However, the agency maintained a bullish view for the bullion, citing an improvement is risk appetite.
Dion Global Solutions Ltd