India restricts gold trade

The Indian government obstructs the gold trade. Axis Bank - leading in the financing and management of gold imports - froze the accounts of several gold dealers. This was preceded by the arrest of two bank employees by officials of the Indian financial police. They are accused by the government of illegal trading in gold rupees.

“We have canceled operations on some accounts for an indefinite period. This is part of a larger operation. According to the bank, the accounts of the affected gold traders will be unblocked in a few days after an intensified review process, ”a bank spokesman said.

Operations in the Indian gold market are noteworthy because gold, along with cash, allows citizens to protect their savings from access by banks and government agencies. For example, special taxes on checking accounts can be circumvented by keeping money in gold coins and bullion. At the same time, Indian Prime Minister Narendra Modi recently announced India's transition to a “cashless society”.

India imports a lot of gold. In November alone, imports increased to about 100 tons. About 800 tons were recorded during the year. Uncertainty about recent developments is now reflected in the higher Indian gold prices compared to the world market price.