Reduction in effective import duty on gold and silver

(Gujarat News Office), Mumbai, Ta. Saturday, January 16, 2021

MUMBAI: The bullion market in the gold and silver market was officially closed today due to Saturday, but the closed market saw a fall in prices behind the world market, market sources said. World gold prices were reported to be hovering around 15 an ounce from ૮૪૯ 15 an ounce over the weekend. Behind gold, global silver also fell from 7.5 an ounce to 8.30 an ounce and last traded at ૭૬ 4.5 to ૭૭ 7.5 an ounce. Meanwhile, there were reports that the government had changed the tariff value used as a benchmark to calculate the import duty on gold and silver imported into the country. Such a tariff value has been fixed at ૮ 215 per kg in silver, while the tariff value of gold has been fixed at ૫૯૩ 205 per 10 grams. This has led to a reduction in the effective import duty on gold and silver imported into the country, market insiders said.

Gold traded higher on Friday night as the dollar index rose against a basket of various currencies in world markets. There were indications that a new big economic package was being offered by the new President of the United States. Unemployment claims there have risen to a four-month high.

The Federal Reserve has signaled that lower interest rates will be maintained and bond buying will continue. Meanwhile, the World Gold Council has indicated that gold demand in India is likely to pick up again in the new year 2021, after declining in 2020.

The country's imports of meat, which had declined by about 4 to 5 tonnes by 2030, are now likely to increase in 2021. A similar situation was seen in 2007 when demand and imports rose sharply in the three years following the decline in demand in 2008, market analysts said.

Meanwhile, in the Mumbai Bullion Market today, gold prices were trading at around Rs 800 per 10 grams excluding GST at Rs 915 and Rs 800 per gram at Rs 8.50 per 10 grams, while prices with GST were three per cent higher.

Meanwhile, silver prices in the Mumbai market today hovered around Rs 200 per kg excluding GST, while prices with GST were three per cent higher. Meanwhile, in the Ahmedabad market today, gold prices fell by Rs 200 to Rs 500 to Rs 30,400 from Rs 2.50 and Rs 30,700 from Rs 3.50, while Ahmedabad silver was quoted at Rs 3,000.

World platinum prices fell further to વાળા 105 an ounce over the weekend from ૯૮ 105 an ounce. Palladium, which was trading at ૨૪ 500, was last trading at 50. Copper prices were reported to have fallen by about 1.5 per cent.

Meanwhile, the dollar rose by Rs 3.05 to close at Rs 3.10 to Rs 3.15 in the closed market today on the back of rising dollar index in global markets, market analysts said.

However, there was talk in the market today that European countries are now considering reducing their reliance on the dollar. New York's main contract, light sweet crude for delivery in New York, fell from ૮૭ 7.5 to ૨૫ 6.5 a barrel over the weekend and Brent crude fell to ૬ 6.05 from ૫૫ 6.41 at છે 6.10. Crude oil prices are softening amid fears of a resurgence of corona infestation in various countries, world market analysts said.