Today, gold and silver futures prices fell in Indian markets. Gold futures on MCX were down 0.6 percent (Rs 27) to Rs 47,292 per 10 grams, while silver futures fell 0.19 percent (Rs 137) to Rs 70763 per kg. Last year, gold reached a high of Rs 56,200 per 10 grams. The price of gold in India attracts an import duty of 10.75 percent and a three percent GST.
Price so high in global markets
Spot gold was trading 0.2 percent down at $ 1,789.02 an ounce in international markets, while silver was down 0.5 percent at $ 26.74 an ounce. A strong dollar index makes gold more expensive for other currency holders. Among other precious metals, palladium was up 0.2 percent at $ 2976.83 today and platinum was down 0.1 percent at $ 1228.94.
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.
The retail jewelry industry may accelerate
The retail jewelry industry is expected to grow 30–35 percent this year. India Ratings said in a report, economic activity will reach the Corona-East, and softening of gold prices will accelerate the recovery. Earlier, in the third quarter of 2020-21, the festive season, increased demand due to marriage, and a 10 percent fall in prices had seen a rise in demand for gold. According to the report, demand for jewelry is expected to grow by 30-35 percent in 2021-22 due to the increase in demand. However, given the improvement in the 'V-shape' in the economy, overall demand may increase by only five to 10 percent as compared to the previous level of Corona.