MUSCAT: India on Friday raised its basic import duty on gold to 12.5% from 7.5% — a move market analysts said will make yellow metal more expensive.

However, gold price in GCC including Oman will get more attractive than in India with a saving of 12% to 15%. “The recent announcement by the Indian Government to raise import duty to 12.5% from 7.5% is expected to make gold more expensive across India. This hike has increased the gold price difference between GCC and India. The gold price in GCC will get more attractive than in India with a saving of 12% – 15%. The weakening rupee will further increase the gold rate in India,” said Shamlal Ahamed, Managing Director of International Operations at Malabar Gold & Diamonds.

“Gold prices have reduced to ‘Consumer-friendly’ levels in the GCC and it is the perfect time for customers to make use of this opportunity to benefit from the gold rate ahead of the holiday season and buy jewellery as gifts for dear ones back home. We are also expecting tourists from India to increase their jewellery purchases during their visit. The price advantage here will further enhance the bridal jewellery purchases from residents and tourists alike,” Shamlal added.

India meets most of its gold demand through imports. That has put pressure on the rupee, which hit a record low earlier on Friday. Experts say the duty hike should lift prices and moderate demand in India, which could weigh on global prices.