New Delhi, April 1 -- Following the premature redemption of several gold bond schemes, the government has abruptly ended yet another gold scheme launched less than a decade ago. The decision comes as the gold prices look poised to climb to Rs.1 lakh per 10 grammes.

Late on 25 March, the government announced that it was discontinuing the medium- and long-term government deposit under the Gold Monetization Scheme, 2015, with effect from the next morning. That meant gold tendered at testing centres and designated bank branches would not be accepted 26 March morning. However, existing deposits are to continue till their redemption.

The medium-term deposits had a tenor of five to seven years, and the long-term ones were for 12-15 years. For ...