Import Halt
According to Reuters, Indian banks have stopped ordering gold and silver due to delays in government clearance. The Times of India reports that the Directorate General of Foreign Trade, operating under the Ministry of Commerce and Industry, typically issues a notification specifying which banks the Reserve Bank of India authorizes to import gold and silver.
Government Notification
Bloomberg reports that the Indian government has issued a notification regarding gold and silver imports. This followed confusion over policy that held up precious metals at customs.
Demand Concerns
Reuters reports that elevated prices are curbing festive buying, leading to lacklustre gold demand in India.
Impact on Supply
The Times of India suggests the import delays could create supply shortages of gold and silver. The delays occurred just days before a Hindu festival when buying bullion is considered auspicious.
