Reduction in pre-budget gold-silver tariff value

(Gujarat News Office), Mumbai, Ta. Saturday, January 30, 2021

The bullion market in Mumbai jewelery market was officially closed today due to Saturday. However, gold and silver prices were on a downward trend in the closed market today, market sources said. Gold and silver prices plunged sharply ahead of the budget today, picking up a sharp rebound over the weekend from rising global prices and a surge in domestic jewelery markets.

Meanwhile, the government has reduced the tariff value used as a benchmark to calculate the import duty on gold and silver imported into the country, leading to a pre-budget reduction in the effective import duty on such precious metals. Now the market players are keeping an eye on how the finance minister changes the import duty on gold and silver in the budget to be released on Monday.

Meanwhile, the government has slashed the benchmark tariff value of gold from ૬ 205 per 10 grams to ૫૯૭ 6, while silver has been reported to be reduced from ૪ 215 per kg to ૮ 215 per kg. In the Ahmedabad market, silver was trading at Rs 1,000 per kg and Rs 200 per kg, while Ahmedabad gold was trading at Rs 200 per 10 grams, down by Rs 200 to Rs 30,400 per kg and Rs 21,000 per kg.

World gold prices rose sharply from ૮૬૮ 15 an ounce to ૮૬૮ 12 an ounce, before falling sharply to a low of ૮૪૮ 15 over the weekend. Global gold prices fell as much as 70 a barrel. After gold, silver rose sharply to ૭૭ 4.5 an ounce from ૪૪ 4.5 an ounce in global markets, before falling sharply to ૭૭ 4.5 an ounce last weekend.

Even in the home market where the world market is collapsing, there was a high demand in the jewelery markets today and new profits were being sold. In the Mumbai market today, gold without GST was trading at Rs 9,050, down from Rs 7,250, and at Rs 8,50, down from Rs 4 to Rs 200.

While silver prices fell from Rs 5 to Rs 3,100 excluding GST, prices of these two precious metals, including GST, were three per cent higher. Meanwhile, other precious metals in the world market also saw significant fall in prices.

Global platinum prices traded lower at ૭૮ 1,101 an ounce, hitting a low of ૭૮ 105 over the weekend, while palladium prices rose sharply to ૨૩૬૫ 7 an ounce, falling sharply to ૬ 717 at the end of the week and last traded at around ૨૨૩૪ 5 to ૨૨૩૫ 7 a barrel.

Market analysts said that the rise in the dollar index against the basket of various currencies in the global market has led to a surge in global gold and increased selling of funds. In the Mumbai currency market, the dollar was trading at Rs 4.05 to Rs 6.10 against the dollar in early trade today.

Meanwhile, crude oil prices remained soft in the world market. New York's main contract, light sweet crude for delivery in New York, traded lower at ૫૨ 6.50 a barrel and Brent crude traded lower at 6.05 a barrel.

According to sources in the United Arab Emirates, the government is considering granting citizenship to foreigners to reduce its dependence on crude oil and maintain growth. Meanwhile, global copper prices were reported to be in the range of 0.50 to 0.3 per cent at the end of the week.