Finance Minister Nirmala Sitharaman on Tuesday announced to cut import duty on gold and silver to 6 per cent from 15 per cent. The move will make them cheaper in India. Following the Budget 2024-25 announcement, gold and silver prices in India declined by around Rs 250 and Rs 400, respectively.
As of 2:00 pm, 24k gold was selling down at Rs 73,580 in the spot market after the Budget announcement, while silver was down by Rs 400 at Rs 91,100 per kg.
“The bullion prices today are highly volatile after the Budget announcement as well as ahead of expiry on Thursday,” said a Delhi-based bullion trader.
The finance minister also proposed to cut the basic customs duty (BCD) to 5.35 per cent from 14.35 per cent for gold and silver dore.
Read More | Gold Price Today: City-wise Updates
Budget 2024 Impact on Gold, Silver Prices
Bhavik Patel, senior commodities analyst, Tradebulls Securities said, “The outlook of Gold looks strong despite import duty cut to 6 percent as with duty cut, it will make gold cheaper domestically which will increase the demand for physical gold.”
The immediate outlook for gold will primarily depend on path of US dollar and US interest rate. Market has already priced in September’s rate cut and once Fed starts on the path of cutting rates, both gold and silver has no other way but only to go up, added Patel.
The gems and jewellery exporters have been demanding for the last several years to cut duties on precious metals to boost exports and manufacturing.
“To enhance domestic value addition in gold and precious metal jewellery in the country, I propose to reduce customs duties on gold and silver to 6 per cent and that on platinum to 6.4 per cent,” the finance minister said during her seventh Budget Speech 2024-25.
Comments
0 comment