As Nirmala Sitharaman announced a cut on import duty on gold and silver
in the Union Budget, gold prices in the national capital went down by Rs 1,324 to Rs
47,520 per 10 gram on a day, according to HDFC Securities, PTI reports.

In the previous trade, the yellow metal had closed at Rs 48,844 per 10
gram.

In contrast, silver jumped Rs 3,461 to Rs 72,470 per kilogram. In the
previous trade, it was priced at Rs 69,009.

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In the international market, gold was trading in the green at USD 1,871
per ounce and silver also quoted with gains at USD 29.88 per ounce.

The cut in import duty on gold and silver, a move that will help reduce the prices of these precious metals in the domestic market and boost exports
of gems and jewellery.

“Gold and silver presently attract a basic customs duty of 12.5 per
cent. Since the duty was raised from 10 per cent in July 2019, prices of
precious metals have risen sharply. To bring it closer to previous levels, we
are rationalising customs duty on gold and silver,” Finance Minister
Nirmala Sitharaman said while presenting the Union Budget 2021-22.

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The customs duty on gold and silver was reduced to 7.5 per cent.

According to Navneet Damani, VP – Commodities Research, Motilal Oswal
Financial Services, “Budget announcement related to cut in import duty cut
from 12.5 per cent to 7.5 per cent hammered gold lower. This step has been
implemented amidst recent rise in prices, smuggling and other factors.”