Gandhi comments light fire under gold price
In lunchtime trade on the Comex market in New York, February gold futures changed hands at $1,262.30 up $23.60 or 1.9% from yesterday's close and off slightly from a high for the day of $1,267.00.
Volume was brisk and by 1pm EST the number of February gold, the most active contract, changing hands already stood at 177,000, compared average daily volumes on the exchange of less around 160,000. Volumes for gold delivered in April was also up at some 40,000 contracts.
Sonia Gandhi, leader of India's Congress party and ruling alliance, has asked the Indian government to relax gold import curbs ahead of parliamentary elections later this year reports the Times of India.
Long the top importer of gold, India fell behind China in 2013 after bullion import duties were pushed up tenfold – from 1% at the start of 2012 to 10% – and other rules such as strictly cash only for imports, mandatory re-export of 20% of imports and transaction taxes stymied India's gold industry.