Import duty changes and gold price shocks
Good evening everyone. I recently noticed how suddenly gold prices can jump without much warning. One day the rate feels stable, and the next day it is noticeably higher. This does not always seem connected to gradual market movements. It makes planning difficult, especially for larger purchases. I suspect government decisions might be involved, but I do not fully understand how that works. Has anyone looked into this kind of sudden price shift?
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Hi, sudden price jumps are often linked to changes in import duties rather than normal market movement. I came across https://unfoldedstars.in/how-bangladesh-jewellers-association-move-gold-market/ which explains this quite clearly. The article mentions that duty changes can be announced and applied very quickly, sometimes within the same day. Unlike exchange rates or international prices, there is usually no adjustment period. Once I understood this, those overnight jumps stopped feeling random. It also explained why some increases seem impossible to predict in advance.