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India’s import tax hike adds to gold’s woes

India’s import tax hike appears to have heaped more downward pressure on spot gold, with the precious metal already being weighed down by the prospects of higher interest rates and the aggressive inflation-fighting rhetoric from central bankers.

At the time of writing, the precious metal is trading below the psychologically-important $1800 level around its lowest levels since May.

India’s import tax hikes add to gold’s woes

Gold is also apparently losing its luster as a safe haven, failing to climb despite the ramped-up fears of a looming recession and the moderating US Treasury yields.

Although gold is set to continue struggling under the weight of the elevated US dollar, the precious metal could ultimately find a more stable footing in its 2H21 range, as mentioned in our May 13th article, provided holdings in bullion-backed ETFs remain resilient as recession risks continue to hurt the market’s collective appetite for risk-taking activities.

 

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