Finance Minister Nirmala Sitharaman announced a significant cut in import duties on gold and silver from 15% to 6%, leading to a sharp decrease in their prices. This change includes a reduction in the Basic Customs Duty (BCD) from 10% to 5% and the Agricultural Infrastructure Development Cess (AIDC) from 5% to 1%.
Following the budget announcement, gold prices on the Multi Commodity Exchange (MCX) dropped by Rs 4,000 to Rs 68,500 per 10 grams. This price adjustment mirrors the global trend where gold prices are around $2,397.13 per ounce.
Silver also experienced a notable decline, with prices on the MCX falling by Rs 4,720 to Rs 84,275 per kg. This drop reflects the broader impact of the duty reduction on precious metals, boosting consumer demand but also prompting a sell-off.
During trading, gold initially opened at a high of Rs 72,838 but faced intense selling pressure post-announcement, sinking to an intraday low of Rs 68,500. This represented a significant intraday loss but was later mitigated by some value buying.
