The rise in gold prices may lead to an upward revision in tariff value. Gold prices in the international market have risen to levels of $1880/Oz as compared to $1815/Oz on February 27, basis which the last tariff value was changed to $586/10 gm.
The subsequent tariff revision is due on March 15th, the expectation is it will be increased to about $610/10 gm based on the current price. In light of this, we expect a sudden demand for CEPA shipments of gold from the UAE for custom clearance before by March 15, 2023.
The situation following the collapse of the Silicon Valley Bank in the US has led to a broad-based belief that the US Fed may hike rates aggressively. This has led to a softness in the US Dollar, thereby pushing gold prices higher. Gold prices may stay elevated in the short term. A slowdown in the global economy and geopolitical tension may push gold prices towards levels of $2000/oz by year-end.