Under the leadership of Prime Minister Narendra Modi, the NDA government has presented its first budget (Budget 2024) with a major announcement concerning gold and silver. Following this, a sharp drop in gold prices was observed. By the time Finance Minister Nirmala Sitharaman finished her budget speech, the price of gold had decreased by approximately 4000 rupees per 10 grams.
Latest Rates on MCX
Finance Minister Nirmala Sitharaman announced a reduction in customs duty on metals including gold and silver in her budget speech. The government has now reduced the existing customs duty on gold and silver to 6%. This decision had an immediate impact on gold prices, making it cheaper by 4000 rupees. Similarly, silver prices have also dropped significantly. During Tuesday's MCX trading, gold futures reached a level of 72,850 rupees per 10 grams, and as soon as the reduction was announced, prices started falling rapidly, reaching 68,500 rupees per 10 grams.
Within just a few hours, Gold Price dropped by 4,350 rupees per 10 grams. On the previous trading day, Monday, it had closed at 72,718 rupees.
Source: aajtak
Significant Drop in Silver Too
Following the Finance Minister's announcement, gold prices began to decrease, and silver prices also dropped substantially. On the Multi Commodity Exchange (MCX), silver prices were at 89,015 rupees but then fell sharply, becoming 4,740 rupees cheaper to reach 84,275 rupees per kilogram.
What Did the Finance Minister Announce?
Notably, Finance Minister Nirmala Sitharaman, in her budget speech, announced a reduction in the customs duty on gold and silver from 10% to 6%. This now includes a basic customs duty of 5% and an agriculture infrastructure and development cess of 1%. Additionally, the duty on platinum has been reduced to 6.4%. According to the budget announcement, customs duty has also been reduced on imported jewelry.
The Customs Duty on gold and silver has now been set at 6%, leading to a potential decline in domestic prices and an increase in gold demand. Previously, the total duty was at 15%, comprising a 10% basic customs duty and a 5% agriculture infrastructure development cess. Following the Finance Minister's announcement, the basic customs duty will now be 5%, with an additional 1% cess.
