The impact of the general budget was seen on the common people as well as on the market. With the announcement of Budget 2024-25, there was a huge decline in the gold market. However, this decline has brought ‘silver’ to the buyers. There was also great news for those who bought gold. As soon as the budget was announced, the price of gold in the market saw a decrease of more than INR 3000.

What is the Latest Rate of Gold?

When the market opened on Tuesday morning, the price of gold (Gold 999, 24K) was INR 72,609 (10 Gms). But after the presentation of the general budget, there was a huge drop in the market and in the evening the price (Gold 999, 24K) became INR 69,602 (10 Gms). While the price of 22K gold was INR 66,510 in the morning, by the evening, the price had fallen to INR 63,755.

Silver’s Shine Fades

The impact of the general budget was also seen on the silver rate. The shine of silver faded. On Tuesday morning, the price of silver was INR 87,576 per kg, which fell by about INR 3000 in the evening to INR 84,919.

Government Proposes Cut in Customs Duty on Gold, Silver

In the Union Budget, the government has proposed a reduction in customs duty on several products, including gold, silver, critical minerals, mobile phones, and other electronic goods. This is aimed at reducing the cost of raw materials, increasing value addition, export competitiveness, and boosting domestic manufacturing. Additionally, duties have been reduced on shea nuts, marine sector goods such as shrimp and its feed, fish feed, feed ingredients such as lipid oil, cancer drugs, other precious metals such as silver and platinum, textiles, steel, copper, capital goods, shipping, medical equipment, and leather sector goods.

Declaration of Reduction of Basic Customs Duty on Gold and Silver Bars from 15% to 6%

The basic customs duty on precious metal coins, gold/silver findings, and gold-silver bars was announced to be reduced from 15 percent to 6 percent. For gold and silver ‘dore’, it was proposed to reduce it from 14.35 percent to 5.35 percent. The duty on platinum, palladium, osmium, ruthenium, and iridium is proposed to be reduced from 15.4 percent to 6.4 percent. Gems and jewellery exporters have been demanding a reduction in duty on precious metals for the last several years to boost exports and manufacturing.

The Union Budget 2024-25 has had a notable impact on the gold and silver markets, bringing significant relief to buyers with the reduction in prices. The proposed cuts in customs duties aim to enhance the competitiveness of domestic manufacturing and boost exports, marking a strategic move by the government to strengthen the economy. This budgetary decision is poised to benefit various sectors, including the precious metals market, thereby fostering growth and development.