Kerala’s jewellers rejoice! Gold prices fall by up to Rs 4000, govt cuts customs duty

NEW DELHI: Finance minister Nirmala Sitharaman proposed to cut the customs duty on gold, silver and platinum, while presenting the union budget of 2024.
Just moments after the announcement, Senco Gold was trading 6.16 per cent higher at Rs 1,000.80 and Rajesh Exports was trading 5.49 per cent higher at Rs 313.90 on the BSE. Shares of Titan Company rose 3.66% to Rs 3,371.65.Currently, the customs duty on imported gold is 15 per cent. The Center has reduced this to six per cent. Experts in the field predicted the gold rates to plummet in the coming days. The price of one sovereign gold may fall up to Rs 5000.With the auspicious month of Chingam around the corner, this news will surely lift the spirits among Malayalees; known for their fascination with gold ornaments. At the same time, experts pointed out that the lower prices may be a setback for people planning to mortgage gold.Barely an hour after the announcement of the budget, the price of gold began to fall. It is reported that there has been a fall of 4000 rupees and the trend will continue in the coming days. Today, 22-carat gold is priced at Rs 51,960 while one-gram gold costs Rs 6,495.Reduction in customs duty has been a long-standing demand of authorized gold traders. The idea was proposed to curb the rising cases of gold smuggling reported in India.When one kilogram of gold is smuggled to India, the culprits involved get a profit of Rs nine lakh. With the rising price of gold and customs duty, the smuggling cartels thrive making fortunes.And now with the customs duty cut short and prices falling, imports will happen rampant giving little scope for smugglers to thrive.