2024-07-23 20:10:12
New Delhi: The price of gold and silver fell on Tuesday, the day of the budget. The price of gold fell by more than Rs 4. At the time of market opening on Tuesday, the price of gold on MCX was Rs 72850 per 10 grams. After the budget was over, it fell drastically and reached Rs 68,500. Thus, it fell by Rs 4350 per 10 grams, that is, gold fell by about 6 percent in a single day. However, after some time, there was a slight improvement in it and it reached Rs 69,122. This was the price of gold earlier in the first week of April. Actually, Finance Minister Nirmala Sitharaman has decided to reduce the custom duty on gold and silver in the budget. This has further reduced the price of gold and silver. On Tuesday, not only the price of gold but also the price of silver fell a lot. It also fell by about 5.5 percent. On Tuesday morning, the price of silver on MCX was Rs 89,015 per kg. After the budget, it fell and came down to Rs 84,275 per kg. Thus, it fell by Rs 4740. After the budget, its falling price also took some break and there was a slight improvement in it too. At around 3 pm, its price came down to Rs 85,540 per kg. The current price of silver was this much in the second week of May.
Gold-Silver Price: Announcement of reduction in custom duty in the budget, gold and silver will become cheaper
Why did the price of gold and silver fall?
The biggest reason for the fall in the price of gold and silver is the reduction in its custom duty. This will make it cheaper to buy gold and silver, meaning their price will fall. Sitharaman said in the budget speech on Tuesday that to increase the domestic value addition in gold and precious metal jewellery in the country, I propose to reduce the customs duty on gold and silver to 6% and on platinum to 6.4%. Anuj Gupta, Commodity and Currency Head of HDFC Securities, said that this huge fall has happened due to the reduction in customs duty.
Bullion industry welcomed
Prithviraj Kothari, Managing Director, Riddhisiddhi Bullion Limited (RSBL) said that the Finance Minister has announced reduction of BCD (Basic Custom Duty) on gold and silver from 10% to 6%. He said that the reduction of 5% in AIDC (Agriculture Infrastructure and Development Cess) will remain unchanged. Thus, the total import duty on gold and silver has been reduced from 15% to 11%. He said that the bullion industry welcomes this move.