24K99 News The Financial Times of the United Kingdom reported on Friday (September 20) that after India recently reduced tariffs, demand for gold jewelry and gold bars surged among Indian consumers, helping to drive the global gold prices to new highs repeatedly.

(Screenshot source: Financial Times, United Kingdom)

Data released by the Indian government on Tuesday showed that in August, the import of gold reached the highest level on record, reaching $10.06 billion.

According to the initial estimate by the consultancy firm Metals Focus, this means that India's gold imports were about 131 tons, which is the sixth highest import total in history when measured by quantity.

The soaring price of gold - which has risen by $25 since the beginning of this year - has historically deterred price-sensitive Asian buyers, causing a reduction in demand for gold jewelry among Indians.

However, at the end of July, the Indian government reduced the import duty on gold by 9 percentage points, triggering a surge in demand once again from the world's second largest gold buyer.

(Screenshot source: Financial Times, United Kingdom)

Philip Newman, Director General of London Metals Focus, said: "The impact of tariff reductions is unprecedented and incredible. It has indeed attracted consumers."

Tariff reductions are a blessing for Indian jewelry stores. Ram Raimalani, the head of MK Jewels jewelry store in Mumbai, said, "The demand is very strong."

On a recent afternoon, customers flocked to the store to buy necklaces and bracelets. Raimalani expects annual sales to increase by 40% during the busy festival and wedding season from September to February.

Raimalani praised the Indian government and Prime Minister Narendra Modi for reducing gold tariffs.

Analysts say that the expectation of rapid interest rate cuts by the Federal Reserve has been a major driver of the significant rise in gold prices this year. Lower borrowing costs have increased the attractiveness of non-yielding assets such as gold and may also put pressure on the US dollar.

The Federal Reserve cut interest rates by 50 basis points on Wednesday, pushing gold prices to a historic high of $2,600 per ounce.

However, strong demand for gold jewelry and bars, as well as central bank purchases in various countries, has also helped boost gold prices.

According to the World Gold Council's data, last year India accounted for approximately one-third of the demand for gold jewelry, and has become the world's second largest market for gold bars and coins.