Prime Minister Modi urged Indians not to buy gold unless necessary, repeating a
May appeal to conserve foreign-exchange reserves as a widening trade deficit and
a softer rupee pressure the economy. Local media reported the government is
considering lowering import tariffs on gold and silver after earlier hikes
failed to curb inflows. Gold, India’s second-largest import after oil, saw
imports rise more than 32% YoY in the first four months of the fiscal year from
April, exacerbating rupee weakness; July’s trade deficit widened to about $32
billion, the largest since January. Modi also urged consumers to buy domestic
goods and avoid overseas travel for tourism and weddings. If not necessary, do
not buy gold.
