By Admin88 
The Union Budget 2024 has unveiled a reduction in Customs duties on key precious metals. Duties on gold and silver have been slashed from 15% to 6%, while the duty on platinum has been adjusted to 6.4%.
This cut is anticipated to lead to lower prices across all three metals.Ahmedabad Investment
In this article, we delve into the implications for gold.
Experts are speculating how much further gold prices might drop in the coming weeks.
The impact of duty reduction on gold pricesAhmedabad Stock
Sachin Kothari, Director of Augmont – Gold For All, commented on the move, stating, “Indian consumers will now be able to buy gold at a 9% cheaper rate, which is expected to boost physical demand significantly.”
Following the announcement, gold prices on the Multi Commodity Exchange (MCX) fell sharply on Tuesday (July 23).
However, on Wednesday (July 24), gold prices experienced a slight uptick, with futures rising 0.52% to ₹68,865 per 10 grams.
This rebound highlights the market❼complex dynamics as it adjusts to the new policy.
Despite this temporary rise, many experts believe that gold prices could continue to decline as the market fully absorbs the impact of the duty reduction.
Rahul Kalantri, VP of Commodities at Mehta Equities Ltd, predicted that prices might further drop to around ₹67,000 per 10 grams, aligning with international benchmarks.
“The duty cut can make legal channels more attractive, boosting retail demand and reducing smuggling,” Kalantri noted.Udabur Wealth Management
Long-term effects on the jewellery sector
The reduction in duties is anticipated to have a ripple effect throughout the jewellery sector.
Suraj HS, Co-founder of Aurm, highlighted that the duty cut would lead to increased demand for gold jewellery, benefiting suppliers, retailers, and consumers alike.
“This move will provide a fillip to the demand for jewellery and precious items in Indian households,” he said.
Piyush Gupta, Director at PP Jewellers by Pawan Gupta, stated, “Lower customs duties mean jewellers can offer more competitive prices and innovative designs, which should stimulate demand and support the sector❼growth.”
Leshna Shah, Founder of Irasva Fine Jewellery, said that the duty reduction would encourage transparency in the gold trade and promote legitimate business practices.
She added, “This policy adjustment supports the entire value chain of the jewellery industry, from suppliers to retailers, and ultimately benefits the end consumer with better value and quality.”Varanasi Wealth Management
Broader economic and global implications
The Customs duty cut is likely to enhance market liquidity and stimulate demand in the precious metals market.
Aksha Kamboj, Executive Chairperson of Aspect Global Ventures and VP of India Bullion Jewelers Association (IBJA), said the move “reflects a strategic approach to strengthening the sector and supporting its long-term sustainability.”
Colin Shah, MD of Kama Jewelry, pointed out the potential for increased exports, particularly in less explored overseas markets, due to the enhanced competitiveness of Indian gold and silver products.
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Looking ahead
As India❼bullion market adjusts to the new Customs duty structure, the outlook for gold prices remains dynamic.
While immediate price drops have been observed, the extent of further declines will depend on various factors, including international market trends and domestic demand.
Jaipur Wealth Management