Why Jefferies sees FY13 gold crisis echoes in PM Modi’s latest appeal

Jefferies has warned that Prime Minister Narendra Modi’s appeal to avoid gold jewellery purchases for one year resembles the policy messaging seen during India’s FY13 current account deficit crisis. The brokerage said rising gold imports, rupee weakness and elevated crude oil prices could revive concerns around CAD pressure and potential gold-related policy tightening.

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