Surendra Mehta, national secretary of the India Bullion and Jewellers Association, said the increase was largely expected as the government looks to contain the current account deficit. He added that elevated gold and silver prices could further impact consumer demand.
On Sunday, Prime Minister Narendra Modi urged citizens to refrain from purchasing gold for a year in an effort to help conserve foreign exchange reserves. India relies heavily on imports to meet nearly all of its gold demand.
