Dealers holding inventory purchased at higher duty rates face selling pressure and will be forced to discount stocks to remain competitive if duty cuts are implemented.
Too little corroboration in the last 3 days to call a trend (1 article). Watching for it to gain traction.
Dealers who purchased gold inventory at higher tariff rates face margin compression if duty cuts are implemented, forcing them to discount existing stock to remain price-competitive. This creates near-term selling pressure as inventory holders attempt to clear positions before further price erosion.
Inventory liquidation dynamics affect physical market liquidity and can create temporary price floors or ceilings depending on dealer positioning. When large holders are forced to sell, it influences the spread between physical and futures prices, which impacts retail and institutional hedging costs.
"dealers holding inventory bought at the higher duty could again be forced to discount their stocks to remain competitive."