$1281.40 last after dipping down to $1276 overnight.
From Mineweb:
Unfazed at October's spurt in gold imports, the Indian government could soon be moderating some of its recent restrictions on gold imports.
Compressed demand for gold and other imports, a tempered demand for oil and an improvement in exports has put the smile back on the face of the Indian government. With the government happy and relatively unfazed at the spurt in gold imports in October, traders are expecting a roll back of certain norms related to gold imports.
"All the signs appear to be looking good. The inward shipment of the precious metal has been severely compressed in the current fiscal. Forex reserves are rising. The announcement to ease some of the restrictive norms should be out soon,' confirmed an official of the All India Bullion and Jewellers Association.
As a first step, the Indian government and the Reserve Bank of India (RBI) are said to be looking at easing the 80:20 rule with regards to gold imports. The rule requires importers of the commodity to supply at least 20% of their imports to exporters.
"The 80:20 rule for gold imports has been a major hurdle since importers of the precious commodity have to show proof of export for every lot. Most times, a consequence of this is that consignments get held up at customs warehouses,'' said Sanjeev Mehta of the Bombay Bullion Association....MORE
