Gold Price today: Gold and silver prices fell in Indian markets today. Gold futures on MCX fell to 47,200 after a fifth consecutive decline in six sessions. Silver futures were down 0.2 per cent at 68,593 per kg. In the previous session, gold had increased by 1.2 percent while silver had increased by 2.8 percent. After reaching a record high of 56,200 in August last year, gold prices have been very volatile this year.
Gold spot in the international market rose 0.1 percent to $ 1,813.99 an ounce. The price of 22 carat gold in New Delhi today was Rs 46,210 per 10 grams, while in Chennai it was reduced to Rs 44,700. In Mumbai, the rate fell to Rs 46,160. The price of 24 carat gold in Chennai was Rs 48,730 per 10 grams.
According to HDFC Securities, gold prices fell by Rs 163 to Rs 46,738 per 10 grams on Friday for the fifth consecutive day. The precious metal had closed at Rs 46,901 per 10 grams in previous trade. However, silver rose by Rs 530 to Rs 67,483 per kg from Rs 66,953 per kg in the previous trade.
In the Budget 2021, Finance Minister Nirmala Sitharaman said that the government is rationalizing the customs duty on gold and silver. Currently, there is a 12.5 percent import duty on gold. The government announced a reduction in customs duty on gold and silver from 12.5 percent to 7.5 percent.
Indian imports bulk of its gold and silver needs. The Finance Minister said that since July 2019, the duty was increased by 10 per cent, so the prices of gold have increased rapidly and to bring it closer to the previous level, we are rationalizing the custom duty on gold and silver.
Reducing the import duty on gold by 7.5 per cent was a long-standing demand of the James & Jewelery industry. Higher import duty was not only indirectly promoting illegal gold transactions, but was also hurting the government’s revenue. It is believed that this will put a stop to smuggling.
The Gem and Jewelery Industry had demanded a four percent reduction in customs duty on gold in the upcoming Union Budget 2021-22. All India Gem and Jewelery Domestic Council (GJC) chairman Ashish Pethe told PTI, “We urge the government to reduce the customs duty from the current 12.5 percent to 4 percent.” If the tax rate is not kept at this level, it will encourage smuggling.
In the new report of the World Gold Council, the purchase of gold by central banks worldwide has declined sharply in 2020. A major reduction in purchases has been recorded in the second half of the year. Central banks made a modest net purchase of 44.8 tonnes in the fourth quarter of 2020. Central gold banks’ annual gold purchases fell nearly 60 per cent to 272.9 tonnes.