Gold prices are rising on May 12, 2026, with major jewelers listing higher 22k rates. The move comes after a push to reduce gold purchases for a year to support India’s foreign exchange reserves. Now IBJA is urging policy changes to better use household gold, including allowing gold lending and borrowing to keep demand in check while unlocking value.
With India’s forex under pressure, jewellers and goldsmiths say the answer is not sacrifice but restructuring. The All India Jewellers and Goldsmith Federation propose a dedicated bullion bank and improved gold monetisation schemes, aiming to cut annual gold import dependence by 200 to 300 tonnes and reduce the widening trade and current account deficits driven by price surges.
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