Credibility in Gold Price Determination Must Be Preserved, Says Chairman of Malabar Group

News Desk, News Nation 360 : The chairman of the Malabar Group, M.P. Ahammad, has issued a warning that some new methods used in India to determine gold prices stray from accepted standards and could jeopardise the long-standing legitimacy of the nation's gold trade. M.P. Ahammad identifies three primary forces influencing gold rates: worldwide market rates, exchange rates of the rupee to the dollar, and prevailing import duty rates. While customs duty rates are standardised for specific intervals, changes in global rates and exchange rates make it imperative to change them regularly. The rates are traditionally determined openly by trading organisations, with rates announced before 9:30 a.m. to make them authentic. The rates change only during critical market situations to maintain consistency for customers. Nevertheless, the chairman added that there are traders who have already started increasing prices on their own, without any valid reason. This is likely to create a problem for the integrity of the gold segment as a whole. He also reiterated that the primary intention of Malabar Gold & Diamonds is consumer protection through equal treatment and transparency.

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