Budget 2018 positive for the gold sector, say traders

MUMBAI: Indian gold traders feels Union Budget 2018 is "positive" for the sector. A comprehensive gold policy to develop gold as an asset class and establishing regulated gold exchanges have been cited as the "postives" by Surendra Mehta, national secretary, India Bullion & Jewellers Association (IBJA).

Certain trade officials speculated whether as part of the gold policy a separate regulator would be set up to regulate the trade and spot gold exchanges. Spot exchanges in a state can be regulated by state authorities such as APMCs for agri spot markets, etc. Some even speculate whether Sebi can get a remit to regulate a spot gold exchange.

"The budget has met all IBJA's demands like Gold policy, spot gold exchange and tweaking of GMS," said Mehta. "The minimum crop price and free health facilities will leave lot of surplus in hands of farmer and middle class, which in turn would be spend on gold. Govt also moved gold from demrit goods to an asset class, which is extremely positive for industry."