In India, gold prices have fallen sharply following a Government move to curb smuggling of the precious metal.
In India, gold prices have fallen sharply following a Government move to curb smuggling of the precious metal. Last week it was announced that gold would be auctioned from Government stocks at fortnightly intervals to force the price down from its recent record high level of 724 Rupees (90 U.S. Dollars) for 10 grammes.
SYNOPSIS: Soon after the announcement by the Reserve Bank of India, the price of gold on the Bombay bullion market dropped sharply to around 670 Rupees (83 dollars). This was caused by a rush of sales before the Government auctions, which begin on Wednesday (May 3). Only licensed gold dealers, who number about 10,000, will be allowed to bid in the sales, lasting until July 26 and the metal will be sold in 100-gramme bars. The Reserve Bank has declined to say how much gold will be put up for auction. India's stocks of saleable gold have been valued at five billion Rupees (625 million dollars). The recent high prices in India had encouraged large-scale smuggling, which the Government now hopes it has curbed.