2:46pm: Gold bulls may have more reason to cheer, if a report in the Asian Wall Street Journal is on the money.
It is reporting India may cut its import tax on gold before the end of February to between 6-8 per cent from the present level of 10 per cent, citing a senior government official.
It had raised the import tax on gold from 2 per cent from 10 per cent since early 2012, to bring down the country's current-account deficit. It tightened restrictions further last year by asking importers to re-export at least 20 per cent of the gold they bring into the country, it reported.
Now that India's current-account deficit is estimated to have halved to around $US45 billion this financial year ending March 31 from $US88 billion last year, this has paved the way for the tax to be reduced, it reported.
Read more: http://www.smh.com.au/business/markets-live/markets-livechina-data-spooks-20140220-331xp.html#ixzz2tpnh3e2k
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