Finally, some good news.
That's in reference to one of the key gold markets on the planet: India, where there hasn't been a lot for bullion investors to cheer about over the last few years. The Indian government has been on a full-out offensive against gold imports, hiking duties and restricting the number of firms able to obtain foreign gold supply.
The result has been a plunge in official shipments into the country, with imports for May totaling just 7.9 tonnes -- down nearly 80% from the 37.62 tonnes the country brought in during May 2013.
But relief is now in sight for this fallen gold market, in the form of official changes to import rules, which news yesterday suggests will be all but a certainty over the coming months.
Local press quoted anonymous sources in in the national finance ministry as saying that a significant decrease in import duties is coming. The source noted: "We are examining the possibility of a cut in the gold import duty in the range of 2% to 4%."
That 2% to 4% cut would be a significant improvement, with the import duty level currently sitting at 15%. Such a move would likely spur increased gold demand in the country, giving a lift to bullion prices.
And that could be just the beginning here. Government sources told the press that further decreases in import duties could be coming, saying, "There is a high likelihood that a calibrated approach to curtailing the import duty on gold may be taken beginning from two per cent cut."
A deeper rollback -- or complete removal -- of duties would be nothing short of a miracle pill for global gold demand. And it could happen soon, with sources speculating that finance minister Arun Jaitley will unveil initial duty reductions as part of an upcoming budget announcement.
Gold is currently selling near the bottom of its recent trading range, at $1,245 per ounce. The risk-reward balance here may have just tilted decisively to the positive.
Here's to golden promises,
Written by Dave Forest at Oilprice.com.