look news india
Mumbai: Gold and silver prices fell sharply in the jewellery markets this afternoon amid news of a significant cut in import-customs duty on precious metals by the Union Finance Minister in the budget. Gold price fell by Rs 3000 per 10 grams and silver by Rs 3000 per kg in Ahmedabad's jewellery market today. The Finance Minister has reduced the import duty on gold to 6 percent, while the import duty on silver has also been reduced to 6 percent, while there were reports that the Finance Minister has reduced the import duty on platinum to 6.40 percent. Gold and silver prices rose in the Mumbai jewellery market today.
The basic customs duty (BCD) on gold bars has been reduced from 10 percent to 5 percent while the Agriculture Infrastructure and Development Cess (AIDC) has been reduced from 5 percent to 1 percent. Thus, now the total duty has become 6 percent. The BCD of gold door has increased from 10 percent to 5 percent and AIDC from 4.35 to 0.35 percent. Thus, now the total duty on dore gold has increased to 5.35 percent. Silver bars have BCD 10 with 5 percent and AIDC 5 with 1 percent. While silver door has increased to 5 percent with BCD 10 and 0.35 percent with AIDC 4.35. Meanwhile, platinum increased by 5 percent with BCD 10 and 1.40 percent with AIDC 5.40. Market experts were speculating that the reduction in gold import duty in India would affect gold smuggling and official imports of gold in the country would increase.
However, news also came that the fall in gold prices in the world market today stopped and rose again after India reduced duty. Global gold prices rose to a high of 2412 to 2413 dollars after hitting a low of 2388 per ounce. Global silver prices fell to a low of 28.66 and rose to 29.31 dollars from 29.30 after India's budget. Global platinum prices were at a low of 945 to 960 dollars.
Gold prices today came down to Rs 72300 at 99.50 and Rs 72500 at 99.90 in Ahmedabad market, while silver prices came down to Rs 86000 per kg in Ahmedabad. Meanwhile, foreign companies have been allowed to sell rough diamonds in special notified areas, which will prove to be a game changer for the country's diamond market, sources said.
This made India a global diamond selling hub in the market like Belgium and Dubai. About 225 to 250 tonnes of gold is smuggled into India every year. Informers were saying that this type of smuggling will reduce significantly due to the increase in duty in India.
Meanwhile, in the Mumbai bullion market today, gold prices without GST stood at Rs 69,323 at 99.50 and Rs 69,602 at 99.90 and silver prices fell to Rs 84,919, while prices with GST were 3 per cent higher than this price.