Sunday, August 14

Gold set for weekly dip as India import duty hike adds to headwinds

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Gold fell below $1,800 on Friday en route

to a third straight weekly dip as a stronger dollar and

prospects of higher interest rates eroded its safe-haven appeal,

with an import tax hike by India also seen dampening demand for


Spot gold fell 0.6% to $1,795.89 per ounce by 0925

GMT, after touching its lowest since May 16 at $1,791.30.

US gold futures dipped 0.7% to $1,795.10.

Coming off their worst quarter since early 2021 amidst

aggressive monetary policy from top central banks, non-interest

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bearing gold has lost about 1.7% so far this week, with a

stronger dollar heaping further pressure.

The ECB is also likely to start raising rates this month.

“Despite the current risk off mood and with financial

markets a ‘sea of ​​red’, the go-to safe haven just now is the

US dollar,” rather than precious metals, independent analyst

Ross Norman said.

Norman said “the very significant increase in import duties

in India” had also hurt prices.

India, the world’s second biggest bullion consumer, raised

its basic import duty on gold to 12.5% ​​from 7.5% in a bid to

bring down the trade deficit.

Gold’s retreat came despite data showing euro zone

manufacturing production fell last month for the first time

since the initial wave of the COVID-19 pandemic two years ago.

Spot silver fell 2.1% to $19.82 per ounce, and has

dropped about 6.3% this week.

Silver was suffering because of its greater industrial

exposure with investors fearing a global recession was looming,

Rupert Rowling, market analyst at Kinesis Money said, adding

that silver “seems unable to find any footholds.”

Platinum slipped 1% to $885.31, and faces a fourth

consecutive weekly fall. Palladium dropped 1.1% to

$1,915.04, but has gained about 1.5% this week.

(Reporting by Arundhati Sarkar in Bengaluru; Editing by Edmund