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Gold Rate Today: Gold becomes costlier as import duty increases, prices reach two-month high

Photo:FILE

Gold Price Today

Highlights

  • On Monday, gold prices hit a two-month high with a big jump
  • Gold rose 0.58 percent i.e. Rs 299 to Rs 52,216 per 10 grams
  • Gold and silver prices are seeing a rise in Delhi’s bullion market.

Gold Rate Today: Tax inflation seems to be dominating once again on gold prices. Last week, the government had decided to increase the import duty on gold imported from abroad. After which, on Monday, the first trading day of the week, gold prices have come to a two-month high with a big jump.

On Monday, on MCX Exchange (MCX), gold for delivery on August 5, 2022 has gained 0.58 per cent i.e. Rs 299 to Rs 52,216 per 10 grams. On Saturday also, there was a jump of 3 per cent in the prices and the prices had gone up by Rs 1500 per 10 grams. The reason for this acceleration is believed to be the move of the government.

Here are the prices of 22 and 24 carat gold

There is a rise in the prices of gold and silver in the bullion market of Delhi. Today 22 grams of gold used for making jewelery is being sold at the rate of Rs 48000 per 10 grams. At the same time, the price of 24 carat gold is Rs 52340 per 10 grams. On the other hand, if we turn to silver, then the price of 1 kg here is Rs 57800.

Gold Rate Today

Image Source : FILE

Gold Rate Today

Import duty on gold increased to 15%

In order to reduce the burden on foreign exchange reserves, the government had increased the basic import duty on gold from 7.5 per cent to 12.5 per cent only last week. After 12.5%, 2.5% Agriculture Cess is also levied. In this case, the total import duty will be 15 percent. The government expects that this will reduce the import of gold and the rupee will also show strength against the dollar.

Gold also strong in global market

If we turn to the global market, here too both gold and silver have seen a rise. According to Bloomberg, on Monday morning, the global futures price of gold on Comex was up by 0.61 percent or $ 11 to trade at $ 1812.50 an ounce. At the same time, the global futures price of silver was currently trading at $ 19.78 an ounce with an increase of 0.57 percent or $ 0.11 on Comex.

The fear of returning to the old era of smuggling

According to jewelery and industry experts, the government may have to face the consequences of this decision and the same old era of gold smuggling may return once again. Ashish Pethe, President, All India Gems and Jewelery Domestic Council (GJC) said, “The sudden hike in gold import duty has taken us by surprise. We understand the government’s position with respect to the rupee against the Indian dollar. But this hike will affect the entire industry and may encourage smuggling.” He added that GJC will hold talks with the government to resolve the situation in favor of the domestic industry.

business will be affected

Saurabh Gadgil, Chairman and Managing Director, PNG Jewellers, said, “At a time when the industry was pushing for reduction in duty on gold, the increase in duty on import of the yellow metal by 5 per cent is astonishing. He said that though the end consumers will not be affected much by this hike, but business may be affected.

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Shivam Bangwal

Shivam Bangwal is an Indian based entrepreneur who is a tech, travel and coding enthusiast with a post graduation degree on Master's of Computer Applications. He is a founder of Youthistaan, People News Chronicle, Hitchhike TV, Branding Panther and many more.
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