Gold has become cheaper by 5 thousand rupees, this is the reason

Gold Price: If you are also planning to buy gold, then there is good news for you. The government has made such a proposal in the budget, due to which there is an unseasonal crowd at gold and silver shops across the country. Yes, the government has made a huge cut of 6 percent in the custom duty on gold and silver through a proposal in the budget. After which a huge drop in the price of gold is being seen. Gold has become cheaper by Rs 5100 since the budget. Due to which the faces of the buyers have blossomed.

At the same time, there is a crowd of customers in the jewelry stores. The situation has become such that there is a queue of customers from the time the shop opens in the morning to the time the shop closes at night. The situation is that jewelers are canceling the leave of their artisans and getting new jewelry made at wholesale prices.

The price of gold has become so much

There is also a decline in the price of gold on the Multi Commodity Exchange. Before the budget, gold was running above Rs 72 thousand per 10 grams, which has now come down to Rs 68 thousand. That is, since the budget, gold has become cheaper by more than Rs 5 thousand per 10 grams. According to the data, this morning, the price of gold on the Multi Commodity Exchange is seeing a fall of more than Rs 1,159. According to the data, at 12:43 pm, the price of gold is trading at Rs 67,793 per 10 grams.

In such a situation, since the budget, the price of gold has come down by Rs 5100. The Indian Bullion and Jewelers Association says that the reduction in custom duty in the budget can affect the price of gold by up to Rs 6 thousand. That is, now gold can become cheaper by Rs 2 thousand per 10 grams.

Will be used in this work

According to CBIC Chairman Sanjay Kumar Malhotra, the budget announcement to cut the excessive import duty on gold will help in preventing gold smuggling and increasing the export of gems and jewellery. In the Budget 2024-25 presented in Parliament, it was announced to reduce the import duty on the precious metal from 15 per cent to six per cent. In the last financial year, CBIC and Directorate of Revenue Intelligence (DRI) had seized about 4.8 tonnes of gold. Earlier, more than 3.5 tonnes of gold was seized in the financial year 2022-23.

The CBIC chief said that the decision to increase the duty on gold imports in July 2022 was taken because the current account deficit (CAD) was increasing due to the geopolitical situation. At such a time, the duty was increased to cut non-essential imports.

Helpful in preventing smuggling

In fact, due to the 15 percent duty, there was a huge difference between the domestic and international prices of gold. He said, all these factors have been taken into account in the budget proposal to reduce duty on gold and precious metals, where the duty runs in line with the rate of duty on gold.

Last fiscal year, India imported gold worth $45.54 billion and silver worth $5.44 billion. During this period, jewellery worth $13.23 billion was exported from the country. India meets most of its demand for gold through imports but it puts pressure on the rupee and the current account deficit. Switzerland is the largest source of gold imports, with a share of about 40 percent. It is followed by the United Arab Emirates (more than 16 percent) and South Africa (about 10 percent).