Gold and Silver Prices Fall after Customs Duty Reduction

Bhilwara (Rajasthan): The reduction in customs duty on gold and silver has led to a slump in sales in the bullion market. Despite the decrease in prices, customers are hesitant to make purchases, anticipating further price drops.

The central government's decision to reduce customs duty on gold from 10% to 6% and on silver from 15% to 6% has resulted in a significant decline in prices.

Traders are now discussing the possibility of an increase in GST (Goods and Services Tax) rates, which has led to uncertainty in the market.

As a result, many traders have stopped selling gold, and those who are selling are doing so at higher prices or are waiting for Monday's prices.

This is the first time that both the spot market and futures market are experiencing a slowdown. Traders believe that this situation will continue until the end of July. However, there is a possibility of prices rising again on Monday.

There is a rumour among jewellers that the GST rate on gold and silver may increase, which has led to a decline in sales. Currently, the GST rate on gold and silver is 3%. As a result, traders are hesitant to sell gold, and customers are waiting for prices to drop further.

The reduction in customs duty was announced by Finance Minister Nirmala Sitharaman in the central budget. Since then, there has been a significant decline in gold and silver prices. Despite the decrease in prices, sales have not increased, and the market is experiencing a slump.