Gold Price Today: Today gold prices have once again fallen. Gold futures on MCX fell 0.4 percent to a 10-month low of Rs 44388 per 10 grams, while silver slipped 0.8 percent to Rs 65421 per kg. In the previous session, gold was cheaper by 1.2 percent or Rs 600 per 10 grams, while silver slipped by 1.6 percent or 1150 per kg. Gold has fallen more than 5,000 cheaper since the beginning of this year and 11,500 from its August high of 56,200.
Today, the price of 22-carat gold in New Delhi was reduced by Rs 650 to Rs 43,950 per 10 grams, while in Chennai it was reduced by Rs 470 to Rs 42,170. In Mumbai, the rate fell to Rs 43,900. In Chennai, the price of 24-carat gold also fell by Rs 500 to Rs 46,020 per 10 grams. A gold spot in the international market rose 0.5 percent to $ 1,719.21 an ounce. US gold futures closed up 0.1 percent at $ 1,717.50.
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 the bulk of its gold and silver needs. The Finance Minister said that since July 2019, the duty was increased by 10 percent, so the prices of gold have increased sharply 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 to 7.5 percent was a long-standing demand of the James & Jewelry industry. The 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 Jewelry Industry had demanded a four percent reduction in customs duty on gold in the upcoming Union Budget 2021-22. All India Gem and Jewelry 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 declined sharply in 2020. A major reduction in purchases has been recorded in the second half of the year. In the fourth quarter of 2020, central banks made a modest net purchase of 44.8 tonnes. Central gold banks’ annual gold purchases fell nearly 60 percent to 272.9 tonnes.