On one hand, to stop the falling rupee, the government increased the import duty. On the other hand, a decline in the dollar index was also seen in the international market. The benefit of which was seen in the prices of gold and silver. If we look at the data, an increase of Rs 11 thousand per ten grams was seen in the price of gold in the multi commodity exchange in the futures market of the country. On the other hand, the price of silver once again crossed Rs 3 lakh. According to experts, gold and silver in the futures market have started adjusting their prices after the increase in import duty.
Now the biggest question is whether the purpose for which the government has increased the import duty will be achieved. Will there be a decline in demand for gold? Will the import of gold reduce? If this happens, then there may be a fall in the prices of gold and silver in the market in the next few days. Let us also tell you at what level the prices of gold and silver are trading in the futures market of the country.
Tremendous increase in the price of gold
There is a tremendous increase in the price of gold on the country’s futures market Multi Commodity Exchange. During the trading session, the price of gold saw an increase of more than Rs 11 thousand per ten grams. If we look at the data, there was a rise of Rs 8300 in the price of gold at 9.35 in the morning and the price was Rs 161742 per ten grams. Whereas during the trading session, gold rose by Rs 11055 and reached Rs 164497, which is also the high of the day. However, gold had opened at Rs 154851. Whereas a day earlier the price of gold had closed at Rs 153442.
Silver price crosses Rs 3 lakh
On the other hand, a huge increase in silver has also been seen on the country’s futures market Multi Multi Commodity Exchange. During the trading session, silver prices crossed Rs 3 lakh. If we look at the data, the price of silver increased by Rs 22,367 during the trading session to Rs 301429 per kg. Which is the peak of Wednesday. However, silver prices opened with a rise in the morning at Rs 290224. Whereas a day earlier it had closed at Rs 279062. However, at 9.45 am, the price of silver is trading at Rs 296597 with an increase of Rs 17535.
Due to this there was an increase
The Government of India has increased the import tariff on gold and silver from 6 percent to 15%. This includes 10% basic custom duty and 5% Agriculture Infrastructure and Development Cess (AIDC). Global bullion prices are being supported by uncertainty over the US-Iran war, stability in US inflation data and possible delay in interest rate cut by the Federal Reserve. These factors increase the demand for precious metals as ‘safe-haven’ assets. The government’s decision to increase import duty on gold and silver is expected to reduce imports, help reduce the trade deficit and strengthen the Indian rupee, which was under pressure due to rising crude oil prices. According to the government circular, the basic custom duty on several categories of gold and silver imports has been increased from 5% to 10%, while Agriculture Infrastructure and Development Cess (AIDC) of 5% continues, taking the total effective import tax to 15%.
Gold and silver became cheaper in the international market
There has been a decline in the prices of gold and silver in the international market. Uncertainty related to the US-Iran war and stronger than expected US inflation data reduced expectations of interest rate cuts by the Federal Reserve. Spot gold fell 0.4% to $4,695.99 an ounce, while US gold futures for June delivery rose 0.4% to $4,705.30. Spot silver rose 0.2% to $86.71 an ounce. At the same time, there is an increase of more than 2 percent in the price of future silver and the price has reached $ 87.40 per ounce.
Now what next?
According to commodity expert Anuj Gupta, gold and silver prices have received support after the increase in custom duty. Both the metals will adjust their prices with duty. This means that in the next few hours or trading days it will be known whether the demand for gold will decrease or not. He said that the government has increased the duty to reduce imports. There has been a necessary increase in prices after the increase in duty, but it is not for long. A huge decline may be seen in the next few days. We need to wait a bit to see how much the reduction will be.
