Gold prices slip by Rs 3500 per 10 grams, silver by Rs 5000 in Bhubaneswar after budget announcement

The jewellery industry on Tuesday gave thumbs up to the Finance Minister Nirmala Sitharaman’s announcement for reduction on customs duty on gold, silver and platinum in the Union Budget 2024.

In her budget speech, the Finance Minister proposed to cut the customs duty to 6 percent on gold and silver. Moreover, the finance minister has also proposed to reduce customs duty on platinum to 6.4%.

Soon after the announcement, gold prices in Bhubaneswar were revised. The gold prices saw a drop of Rs 3500 in per 10 grams of gold. The price of 22 carat gold, which was Rs 6750, has come down to Rs 6400. Similarly, the rate of silver which was around Rs 95,000 per kilo has now come down to Rs 90,000, informed Mitesh Khimji, Director of Khimji Jewellers.

“We thank the FM for announcing a reduction in customs duty as we have been demanding a cut. As a result, the prices of gold and silver have been reduced across India. We have also implemented the revised prices. The reduction in duty will ensure that the grey market will be completely abolished,” said Mitesh.

There was a rate difference of 15 percent, but after the reduction the grey market will be abolished, said Mitesh. “As earlier the import duty was 15 percent, it was attracting smuggling from duty free countries. Now after the reduction in customs duty, this will be eliminated as it would not be feasible and now all gold will be imported officially. Apart from this, gold will be affordable for the common people,” Mitesh added.

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Market analysts believe that gold prices are likely to slip by Rs 4500 to Rs 5000 per 10 grams at least after the first consignment is imported in the next day or two.