The last two days have seen a sharp decline in gold and silver prices. But today, Wednesday, once again, the price of gold has seen a rise. On Wednesday, the Multi Commodity Exchange (MCX) gold futures for February delivery rose 0.36 per cent. Silver futures for March delivery rose 1.67 per cent.
Significantly, gold prices have fallen by Rs 1,800 in the last two sessions due to the reduction in import duty on gold and silver by the government. On the Multi Commodity Exchange (MCX) on Wednesday, February gold futures rose by Rs 174 to Rs 47,925 per 10 grams and silver by Rs 1,125 to Rs 68,666 per kg.
Gold rose 0.4 per cent to 1, 1,844.48 an ounce on the back of a stronger dollar in international trade. Silver rose 3.2 per cent to 27 27.25 an ounce.
Bullion prices fell
Gold and silver prices fell in the domestic bullion market on Tuesday. In the national capital, gold fell by Rs 480. As a result, gold was trading at Rs 47,702 per ounce. Gold and silver prices had declined not only in Delhi but also in many other places. Importantly, the gold price had touched Rs 48,182 per ounce in the previous session.
Will gold fall in price?
Union Finance Minister Nirmala Sitharaman presented the budget in Parliament yesterday (February 1). This time, she made a big announcement that the five per cent customs duty on gold and silver would be reduced. However, she said a cess of 2.5 percent would be imposed on gold and silver. On the one hand, the finance minister announced a reduction in customs duty, while on the other hand, she said she would impose a cess of 2.5 per cent on gold.
“Gold used to have a customs duty of 12.5 per cent. It has now been reduced to seven and a half per cent. Customs duty has been reduced by five percent. But on the other hand, the government has imposed a cess of 2.5 percent. What used to be a 12.5 per cent duty will now be taxed at 7.5 percent plus 10 percent. Therefore, a definite benefit of 2.5 percent will be given to goldsmiths. Or gold will be cheaper. Now it will be important to see how the benefits reach the gold consumers,” said Nikhilesh Soman, an economist.