On Wednesday, the price of gold declined in the national capital, but silver rose sharply. Today, the yellow metal fell by Rs 317 to Rs 46,382 per 10 grams in the national capital. The fall in the global markets affected the price in the domestic market. According to HDFC Securities, gold had closed at Rs 46,699 per 10 grams in the previous trade.
Silver became costlier by Rs 2,328
Talking about silver, it rose by Rs 2,328 to Rs 70,270 per kg. Silver had closed at Rs 67,942 on the previous trading day. In the international market, gold reached $ 1,776 an ounce while silver was at $ 26.42 an ounce.
Gold demand decreased by more than 35 percent last year
The country's gold demand declined by more than 35 percent to 446.4 tonnes in the last year ie 2020. This information is given in a report by the World Gold Council (WGC). The report on WGC's 2020 gold demand stance said that the demand for gold declined amid the enforced lockdown due to the coronavirus and the price of precious metals reaching their all-time high. However, at the same time, the report said that the situation is now normalizing and the industry has been strengthened by continuous reforms. As such, the demand for gold is expected to improve in 2021 this year.
The government reduced import duty on gold and silver
On February 1, the government announced a cut in import duty on gold and silver. This step will help in bringing down the prices of these precious metals in the domestic market and will encourage the export of gems and jewelry. Finance Minister Nirmala Sitharaman, while presenting the budget for 2021-22, said, "At present, 12.5% customs duty is levied on gold and silver. Since the duty was increased by 10 percent in July 2019, the value of precious metals increased sharply, to bring it closer to the previous level, we are rationalizing customs duty on gold and silver. ' The customs duty on gold and silver has been reduced to 7.5 percent.