Since the announcement of the cut in the import duty of gold and silver, the price of gold has continued to fall in the Delhi bullion market. Today, gold fell by Rs 163 to Rs 46,738 per 10 grams. In the previous trading session, gold had closed at Rs 46,901 per 10 grams. This is the fifth consecutive day when the price of precious metal has fallen. Gold has also become cheaper due to the rise in the Indian rupee against the dollar.
Talking about silver, today silver rose by Rs 530 to Rs 67,483 per kg as against Rs 66,953 per kg in the previous trading session. The rupee strengthened three paise to close at 72.93 against the dollar in early trade on Friday in the foreign exchange market. In the international market, gold gained US $ 1,810 an ounce while silver remained almost unrecognized at $ 26.71 an ounce.
It was announced in the budget to reduce the customs duty on gold and silver to 7.5 percent. The announcement of lowering the duty by 12.5 per cent in the budget led to the fall in gold. This step has been taken in view of the recent rise in gold prices, smuggling and other factors. The jewelery industry welcomed the move, saying it could boost retail demand and curb smuggling in the world’s second-largest bullion consumer. Analysts say that rising global demand for gold could support global prices.
Gold and silver price fluctuations are caused by fluctuations in the US dollar, rising corona virus cases and related restrictions, mixed economic data from major economies and additional stimulus measures. Analysts say the biggest factor on the price of gold in the last few weeks is progress on the vaccine front.