Reduction in custom duty in the forthcoming budget can affect Gold Prices in India. Experts suggest that the gold prices may decline due to the import norms relaxation that targets reduction in custom duty as well. It is expected that per 10 grams, gold price may fall below 25000 INR.
IGuru Research senior Mr. Shiv Shrivastava, states that in upcoming week gold price may encounter hike and the range can go anywhere between 25,750 INR to 26,500 per 10 grams. However, later tremendous decline in gold price can be expected to due new gold import norms. According to him, easing ratio of gold import 20:80 in India which is likely to be implemented is a good sign for Gold traders. He further adds, not only gold traders but Indian gold jewellery market will get an advantage due to the decline in the gold price.
Current customs duty imposed on gold is 10 percent, however in the forthcoming Budget this percentage will decline up to 4 – 5 percent. Reduction in customs duty as per the expectation can result into fall in gold prices. Many experts believes that positive outlook for gold trading due to decrease in customs duty will emerge as significant tool to bring stability in Indian gold market. To boost export, RBI has eased gold import norms, which is a great sign towards strengthening Indian gold market.
|Date||22 Carat (Per 10 Gms.)||24 Carat (Per 10 Gms.)|
|Today's Price||Rs. 28780/-||Rs. 30780.75/-|
Analysts adds, weakening trend in overseas market, leave impact on the price of yellow metal. Further, decline in the gold prices at futures trade along with domestic trend which is normally affected by the price of gold in overseas market, has drawn expertís view point towards the perception of changing import norms for domestic importers, in order to attract gold trade opportunities in Indian gold market.
To keep checking depreciating rupee and burgeoning current account deficit, last year, RBI imposed restrictions on gold imports. Announcement of easing gold import norms under 20:80 scheme is relieving for gold importers. According to 20:80 scheme, however, an importer has to ensure that 20 percent of imported gold is purposed at export and rest of the gold for domestic use.
In overseas market, gold prices closed to its four-month low. At international level, gold price fell at USD 1,240.61 from USD 1,243.06 an ounce. This trend has also affected Gold Premiums in India. Though despite of decline in gold price, other Asian regions has failed to pick up but importers in India are seeking, ease restrictions on gold import, as golden opportunity to grab Indian good market and make revenue.