National News
Precious Metals: Record Highs & Cautious Gains
In the domestic market (MCX), gold and silver have hit unprecedented levels. Gold is currently hovering near the Rs. 1.53 lakh per 10-gram mark, while MCX silver has surged past Rs. 2.45 lakh per kg.
On the global stage, the momentum is slightly more restrained due to a powerhouse US Dollar, which has climbed to 99.3.
- Spot Gold: Trading marginally higher above $4,710 per ounce.
- Spot Silver: Initially rose to $76 per ounce before facing pressure and slipping toward the $75.6 range.
Crude Oil: Fueling Inflation Fears
As the conflict enters its ninth week, energy markets are on edge. Brent Crude has breached $106 per barrel, while US WTI rose above $95. These prices reflect the severe supply risk posed by the effective closure of the Strait of Hormuz, a critical chokepoint for global oil transit.
The failure of a second round of peace talks has dashed hopes for a swift resolution.
- Diplomatic Collapse: President Trump cancelled a high-profile meeting in Pakistan that was intended to bring US and Iranian envoys to the table.
- The Naval Standoff: Tehran refuses to negotiate while the US Navy blockade remains in place.
- The Nuclear Factor: While Iran expressed a willingness to reopen the Strait of Hormuz, they have shown no intent to abandon their nuclear program—a non-negotiable demand for Washington.
Investors are now bracing for a heavy week of policy decisions.
- The Fed Transition: The Federal Reserve is expected to hold rates steady this Wednesday. This meeting is particularly significant as it likely marks Jerome Powell’s final session as Chair, with Kevin Warsh anticipated to succeed him in May.
- Global Policy: Decisions from the ECB, Bank of England, and Bank of Japan are also due this week.
With inflation risks rising alongside oil prices, there is growing concern that central banks may be forced to keep interest rates higher for longer to combat the economic fallout of the Middle East crisis.
Market Sentiment: Fragile and uncertain. The “nerve-wracking” tension in the Middle East continues to act as the primary driver for both commodities and currency volatility.
National News
Gold Industry Proposes New Strategy To Cut Imports and Boost Local Economy
Precious Metals Refineries Forum (PMRF) Has Proposed A Two-Track System To Manage Gold More Efficiently
Following Prime Minister Narendra Modi’s call to reduce gold imports and foreign travel, major Indian bullion and jewellery bodies have submitted a new plan to the government and the Reserve Bank of India (RBI). The strategy aims to lower the nation’s trade deficit by tapping into the estimated 30,000 tonnes of gold sitting in Indian households.
This move comes after India’s gold imports jumped 24% to a record $71.9 billion in the 2025-26 financial year, with over 721 tonnes of gold brought into the country.
The New Strategy: Two Separate Systems
The Precious Metals Refineries Forum (PMRF) has proposed a two-track system to manage gold more efficiently:
- For Exporters:Â Imported gold should be strictly saved for jewellery exporters using one-year Gold Metal Loans (GML).
- For Local Buyers:Â Domestic demand should be met entirely by recycling household gold. This gold would be collected from citizens, refined locally, and sold back through jewellers and retailers.
Under this plan, people who deposit their idle gold could earn 2% to 2.5% interest, while businesses taking gold loans would pay an interest rate of 3% to 4%.
Fixing Why Past Schemes Failed
Previous government gold schemes failed to gain traction primarily because they left out local jewellers and lacked a proper banking structure. Without a joined-up system, institutions faced high financial risks from changing gold prices.
To fix this, trade bodies are calling for a complete system that includes:
- Direct involvement of trusted local jewellers. The schemes did not take off in the past because jewellers were not part of them. About 10% to 20% of family gold is held as bars or coins.
- Strong bank backing and secure storage vaults across the country.
- Tax incentives, such as removing the 3% GST loss when physical gold is converted into Electronic Gold Receipts (EGR), and offering income tax relief on the interest earned.
Industry Support
Industry experts say a smooth system is already possible. Collection and purity testing centres have confirmed that collected household gold can be processed within 48 hours and safely moved to secure, bank-approved vaults.
Representatives from the Indian Bullion and Jewellers Association (IBJA) recently held discussions with RBI officials to fast-track these changes.
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