Gold jumps in India after govt retains import duty at 10%

Mumbai

GOLD prices in India rose to the highest level in more than a week after the world's largest consumer unexpectedly left the import tax on the metal unchanged.

Futures rallied as much as one per cent to 26,490 rupees (S$585) per 10 grams, the highest since Feb 19, on the Multi Commodity Exchange of India Ltd in Mumbai.

Finance Minister Arun Jaitley retained the duty at 10 per cent in the federal budget on Saturday. Seven of the 10 jewellers and analysts surveyed by Bloomberg this month had predicted a tax cut.

The extension of import tax may spur smuggling and increase the premium jewellers pay to banks …