According to Reuters, trade sources said that Indian banks had suspended orders for importing gold and silver from suppliers outside China, with large quantities of precious metals stuck at customs , as the government had yet to issue a formal order authorizing the import of these precious metals. As India is the world's second-largest gold consumer and the largest silver buyer, with nearly all of its demand relying on ex-China purchases, the country could face a supply deficit without new imports. Weak Indian demand could weigh on global gold and silver prices , while narrowing the country's trade deficit and supporting the rupee. The rupee has been one of Asia's worst-performing currencies so far this year. Authorities had taken several measures to ease pressure on the rupee, including recently urging refiners to limit their spot dollar purchases. The suspension of gold and silver import orders by Indian banks from overseas suppliers, as well as the backlog of large quantities of precious metals at customs due to the lack of a formal government authorization order, had not been previously reported. The Directorate General of Foreign Trade (DGFT), under India's Ministry of Commerce and Industry, typically issues an order at the beginning of each fiscal year listing the banks authorized by the Reserve Bank of India to import gold and silver. The order previously issued in April 2025 was valid until the end of the last fiscal year (March 31), and banks were currently awaiting a new directive from the DGFT. The DGFT did not immediately respond to Reuters' request for comment. A bullion dealer at a private bank in Mumbai said that banks had expected the DGFT to issue the order in early April as in previous years, but no new announcement had been made so far, resulting in more than 5 mt of gold stuck and unable to clear customs . The dealer said the uncertainty over the timing of the DGFT order had led banks to suspend new import orders from overseas suppliers. The dealer requested anonymity as they were not authorized to speak to the media. Sources said that approximately 8 mt of imported silver was also stuck and unable to clear customs . Another bullion dealer said there was no point in placing new orders when previous shipments could not clear customs. According to data from the World Gold Council, India's gold demand fell to 710.9 mt in 2025, the lowest level in five years. Sources said that gold and silver inventory imported in previous months was being depleted, and the market was now relying on sales from exchange-traded funds, which were facing redemptions. Mehta Surendra, Secretary of the India Bullion and Jewellers Association, said: "Clear rules are needed to ensure imports resume." Mehta stated that without imports, a supply deficit would emerge, and premiums would rise after Akshaya Tritiya, India's second-largest gold-buying festival. A bullion dealer in Kolkata said that as the Iran conflict drove up prices of oil, natural gas, and fertilizers, India's import bill in April could rise, which might prompt the government to slow down gold and silver imports to control the trade deficit.

[SMM Steel] The Indian rupee closed nearly unchanged at 93.06 per US dollar, supported by dollar sales from position unwinding but capped by importer hedging demand amid uncertainty linked to the Iran conflict. The currency had rebounded earlier after intervention signals from the Reserve Bank of India, recovering from a record low of 95.21.

On Friday (June 6), the Reserve Bank of India (RBI) significantly reduced its benchmark policy interest rate, cutting it by 50 basis points from 6% to 5.5%, the lowest level since August 2022. The new interest rate is below the median expectation of 5.75% from a media survey, marking the third consecutive interest rate cut by the RBI since February. RBI Governor Sanjay Malhotra explained at a press conference that the central bank chose to implement this interest rate cut in light of the significant slowdown in inflation and economic growth that is "below our expectations" amid a challenging global environment and heightened uncertainties. He also announced that the RBI had decided to reduce the reserve requirement ratio (RRR) by 100 basis points to 3%. Following the unexpected interest rate cut by the RBI, the Indian stock market surged, reversing an opening decline of 0.3% to a current gain of 0.87%. Additionally, the country's Nifty Bank Index also rose by 0.95%, as the reduction in the RRR is expected to free up more capital for the central bank to boost credit. Monetary policy stance adjusted to neutral India's inflation is largely on a downward trend, providing the RBI with room to cut interest rates. The latest headline inflation rate in April was 3.16%, the lowest level since July 2019. The RBI had previously revised down its inflation expectations for the current fiscal year from an earlier estimate of 4% to 3.7%, and Governor Malhotra indicated that inflation is likely to fall below the target. However, given the magnitude of the interest rate cut, the RBI stated that there is limited room for monetary policy to support growth and will adjust its monetary policy stance from "accommodative" to "neutral." The RBI governor said, "From now on, (the Monetary Policy Committee) will carefully assess upcoming data and evolving prospects to chart the future course of monetary policy, aiming to achieve an appropriate balance between economic growth and inflation." Regarding India's economic outlook, Malhotra pointed out, "The Indian economy presents a picture of strength, stability, and opportunities." However, the central bank maintained its full-year GDP growth forecast for the current fiscal year at 6.5%, a significant slowdown compared to the 9.2% growth rate in the previous fiscal year. The RBI also highlighted growth concerns at its previous meeting due to tariff threats from the US.

The new round of refined oil price adjustment window will open at 24:00 on February 6. According to monitoring by the Price Monitoring Center of the National Development and Reform Commission (NDRC), international oil prices fluctuated downward during this refined oil price adjustment cycle (January 16 to February 5). Based on the current domestic refined oil pricing mechanism, the adjustment amount is less than 50 yuan per mt. Therefore, the prices of gasoline and diesel will not be adjusted this time, and the unadjusted amount will be carried forward or offset in the next adjustment.

The purchase of gold by central banks of many countries, the safe-haven demand brought about by geopolitical conflicts and the market's enthusiasm for going long are still continuing, and COMEX gold continued to set a new high on April 9.