Positive impact likely for Bullion sector :-
Impact is likely to be positive for the precious metal sector in India Budget 2015-16. The bullion sector, especially the Gold jewellery sector, is back in focus with the recent announcements made by the government and the Reserve Bank of India(RBI).
RBI allowed imports of coins and medallions recently but the import duty on gold is still quite high and the government may slash it in this Budget. The government may consider a reduction of 2-4 per cent in import duty on gold in the forthcoming budget, a move that could help boost exports and manufacturing of gems and jewellery.
Gold bounces off 7-week low:-
Gold edged higher on Wednesday after dropping to a seven-week low the session before, with Federal Reserve Chair Janet Yellen indicating flexibility in raising US interest rates. Yellen said on Tuesday that while the Fed is preparing to consider rate hikes on a "meeting-by-meeting basis", an increase is not likely for at least the next couple of meetings.
BULLION MARKET FUNDAMENTALS :-
* Spot gold was up half a percent at USD 1,206 an ounce by 0021 GMT, after hitting its weakest since Jan. 5 on Tuesday at USD 1,190.91.
* US gold for April delivery gained 0.8 percent to USD 1,206.30 an ounce. Silver, both spot and futures , rose more than 1 percent.
* Asian shares rose, tracking gains on Wall Street, after Yellen said it would be several months before the Fed expects to boost interest rates.