Big Fall In Gold Price India Post Budget, July 23: 24K/100 Grams Gold Declines By Rs 29,900

Gold price in India today witnessed sharp decline soon after Nirmala Sitharaman announced a cut in customs duty on gold and silver to 6%. Sitharaman also declared an exemption of custom duty for 25 critical minerals including lithium, copper, cobalt, etc. 22k gold price today declined by Rs 2750 to Rs 64,950/10 grams and 100 grams of 22 carat yellow metal prices slipped sharply by Rs 27,500 to Rs 6,49,500.

24k gold prices today dived by Rs 2,990 to Rs 70,860/10 grams while 100 grams of 24 carat yellow metal prices today declined by Rs 29,900. 18k gold prices today turned cheaper by Rs 2250 to Rs 53,140/10 grams and 100 grams of 18 carat precious metal prices fell by Rs 22,500/10 grams to Rs 5,31,400.

Cheering the latest move of slashing customs duty on yellow metal, Saiyam Mehra, Chairman, All India Gem & Jewellery Domestic Council said, "The reduction in the basic customs duty on gold and silver to 6% and on platinum to 6.4% is a commendable move by the government. This was a long-standing demand from the All India Gems & Jewellery Domestic Council, which represents the entire gems and jewellery industry. The customs duty reduction will benefit domestic jewellery manufacturers, especially small and medium enterprises, encouraging them to transition gradually to the formal channel. Additionally, the Finance Minister has also increased the scope of working capital loans to SMEs and MSMEs, which will help these units expand their businesses in the future. The extension of the direct benefit transfer scheme to the manufacturing sector, with separate salary and Employees' Provident Fund transfers directly to the accounts of employers and employees, is a wonderful move. This will accelerate employment generation in India. Overall, this budget has focused on 9 key priorities of Viksit Bharat and we are proud to witness it."

Silver prices too witnessed sharp decline in India today. Silver price recorded sharpest decline in months today with 1kg silver registering a decline of Rs 3500 to Rs 88,000 on July 23.

As gold prices declined steeply today after Nirmala Sitharama's announcement of slashing custom duty on the yellow metal, Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions Limited (RSBL) said, "The finance minister has made a big announcement regarding the reduction in Gold and Silver customs duty from 15% to 6%. BCD (Basic Customs Duty) is reduced from 10% to 5% and AIDC (Agriculture Infrastructure and Development Cess) is reduced from 5% to 1%. This announcement is a welcome step for the bullion industry, as bullion market participants have been waiting for this duty cut for a long time. Bullion market participants were expecting a 5% cut in duties, but FM has announced a 9% cut, which is a commendable step from the government. Indian consumers would be able to buy now at a 9% cheaper rate from today, so it will boost physical demand."

Appreciating the latest move by the Finance Minister, Rajesh Rokde, Vice Chairman, All India Gem & Jewellery Domestic Council said, "We admire Finance Minister Nirmala Sitharaman ji's Union Budget presented today, which stands out in several ways. Notably, after persistent efforts from GJC, the government has reduced customs duties on gold and silver to 6 % and on platinum to 6.4%. This move will provide significant relief to consumers who have been investing in alternative assets, encouraging them to return to gold investments. We are confident that household investment and savings in India will see an increase in the coming days."

Additionally, the expansion of working capital loans for SMEs and MSMEs in the jewelry sector will provide a much-needed boost. The increase in the personal income tax exemption limit will also benefit consumers and promote household savings. Overall, the Union Budget 2024 is commendable, added Rajesh Rokde.