The Director General of Foreign Trade (DGFT) placed restrictions on importing gold jewellery of certain kinds, effective from June 11, 2024. The authority issued an official notification on Tuesday and informed that it is adding the import of select gold jewellery to the restricted category.
The categories placed under restricted imports include gold jewellery studded with pearls, gold jewellery studded with diamonds of two types of heading, gold studded with precious and semi-precious stones, and gold parts.
The restrictions have been imposed on the above mentioned categories of jewellery from all countries, except the UAE as part of the Comprehensive Economic Partnership Agreement (CEPA) between the two nations. However, importing parts are restricted even from the UAE, as per the notification.
Notably, the recent surge in imports from nations like Indonesia and Tanzania is being cited as the main reason behind this decision from the DGFT. India has a free trade agreement with Indonesia. Goods traded under the restricted category require a special import licence or registration from the authorities.
Recently, gold prices have been surging. On Tuesday, the precious metal price climbed by Rs 150 to Rs 71,950 per 10 gms in New Delhi, reported PTI. On Monday, gold prices closed at Rs 71,800 per 10 grams.
“Gold rose on Tuesday as traders covered their shorts ahead of the US Federal Reserve's meeting outcome and US inflation data, which may provide fresh clues about the timing of the interest rate cuts. US Treasury yields and the US dollar also fell from their recent highs providing support for the precious metal prices,” Saumil Gandhi, Senior Technical Analyst of Commodities, HDFC Securities noted.
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Investors anticipate the US Fed’s interest rate to further provide an insight into the monetary policy ahead and give a clue about the rates.