Neutral impactCommodity
Gold's Record Rally, High Taxes Fuel India's Under-The-Counter Cash Market
NDTV Profit 1 hr ago·30 Sept 2026, 1:54 am
India's gold market is seeing a surge in under-the-counter sales as high taxes make official purchases expensive. Investors are turning to the cash market to avoid duties and GST, driving a record rally in prices. This shift highlights the significant impact of taxation on consumer behavior and the demand for physical assets.
For investors, this trend suggests that demand for gold remains resilient despite high costs. The reliance on the unorganized sector indicates that price sensitivity is high, and investors should monitor how policy changes might affect this dynamic. It also points to the enduring appeal of gold as a safe-haven asset in the current economic climate.
Moving forward, the key focus will be on the government's potential policy adjustments to curb tax evasion in the gold market. Investors should also watch for any shifts in global gold prices and their effect on domestic demand. Understanding these factors will be crucial for assessing the market's future trajectory.
Key takeaways
- Category: Commodity.
Why it matters
A routine update. Use the price and stock snapshot to gauge how the market is responding.
