 |
|
The article delves into the current state of gold prices in India, highlighting the recent reduction in customs duties on precious metals and its potential impact on the market. On July 25, 2024, gold prices in India hovered near Rs 70,000 per 10 grams, with 24-carat gold priced at Rs 70,850 and 22-carat gold at Rs 64,940 per 10 grams. The government's decision to cut customs duties on gold and silver is anticipated to reduce smuggling and potentially lower prices for consumers.
The duty reduction, however, comes at a cost for the government, estimated at over Rs 28,000 crore in lost revenue based on 2023-24 import levels. This decision reflects India's reliance on imported gold, which significantly influences domestic prices and mirrors global trends. India's cultural importance of gold, particularly during festivals and weddings, further impacts demand levels. Despite the recent duty reduction, the article points out that India's gold demand remains substantial, with imports reaching USD 45.54 billion in FY24.
The article underscores the impact of gold imports on the Indian rupee and current account deficit. Despite efforts to curb smuggling, seizures of smuggled gold reached a record high of 3,917.52 kg in the January-October period of 2023. The retail price of gold in India is influenced by factors beyond the metal's intrinsic value, including cultural significance and market fluctuations. Investors and traders continue to closely monitor these dynamics, anticipating further developments in the gold market.
Source: Gold Price Today: Check 22 Carat Rate In Your City on July 25