India’s gold discounts soar past $200 as duty hike triggers selling shock

Discounts widened over $200 an ounce despite higher duties

India’s gold discounts surged to a record level above $200 an ounce after the government lifted gold and silver import duties to 15% from 6%. Higher local prices hit an already weak demand backdrop, prompting investors to sell even at steep discounts. While retail buyers and jewelers stayed away, gold futures jumped 7.2% to the highest in two months and investors booked profits in gold ETFs. Dealers also fear the hike will fuel smuggling by widening grey-market margins.