Jewellers have reported a rise in daily demand, with some experiencing a surge of up to 20% since the duty reduction. To meet this increased demand, jewellers have canceled their craftsmen’s leave, anticipating that the high demand will continue through the festive season. India imports nearly all the gold it uses for jewellery and bars. According to the sources, the gold price drop to Rs. 50,000 in upcoming days.
Following the budget announcement, gold prices have dropped from Rs 72,609 per 10 grams on Tuesday to Rs 69,194 per 10 grams on Wednesday. This Rs 3,415 per 10 grams drop came after the government reduced the customs duty on gold imports from 15% to 6%.
Typically, when gold prices drop, demand increases. And if demand rises, prices are likely to follow suit. With this dynamic in play, we can expect the returns on gold to go up as well,” said Viral Bhatt, Founder, Money Mantra.
Both gold and silver prices recorded a dip on the Multi Commodity Exchange (MCX) on Thursday, July 25, 2024.
Gold futures, maturing on August 5, 2024, stood at Rs 67,746 per 10 grams on the MCX, after recording a dip of Rs 1,206 or 1.75 per cent. The previous close was recorded at Rs 68,952.
Similarly, silver futures, maturing on September 5, 2024, witnessed a dip of Rs 3,495 or 4.12 per cent and were retailing at Rs 81,399 per kg on the MCX against the previous close of Rs 84,894.
Impact on Sovereign Gold Bond Prices
The price of gold for Sovereign Gold Bonds is based on the prevailing gold prices which is also impacted by the customs duty. Experts feel that the decrease in customs duty might impact the returns from SGBs.
“However, the recent cut in customs duty on gold may dampen the gold bonds returns. With the decrease in gold prices, the investors of Sovereign Gold Bond Scheme 2016-17 – Series I which is nearing redemption might also be impacted,” said Viral.
Rahul Agarwal, Director, IntyGritty MoneyTree expects the cut in the customs duty will impact the issue price of the new SGB as well. “While the SGBs maturing in the near term might see a negative impact due to the cut. But as we are slowly inching towards festivities, the gold prices might increase as well. There might not be any impact from the long-term perspective,” he said.
GOLD, SILVER PRICES IN INTERNATIONAL MARKET
Gold price drop nearly 1% on Thursday, as investors booked profits ahead of U.S. economic data that could offer more cues on when the central bank will cut interest rates this year and by how much, news agency Reuters reported.
According to the latest metal report, spot gold fell 0.9 per cent to $2,377.29 per ounce by 0217 GMT, while U.S. gold futures fell 1.6 per cent to $2,376.70.
Among other precious metals, spot silver fell 2.8 per cent to $28.18 per ounce.
Rahul Kalantri, VP of Commodities at Mehta Equities Ltd, said, “We have seen sharp declines in gold and silver prices in Asian markets due to increased economic concerns in China. However, potential Federal Reserve rate cuts in September could offer some support for prices.”
Jigar Trivedi, Senior Research Analyst at Reliance Securities, said, “The 50% retracement level for gold is around Rs 65,800 per 10 grams, which is a major support level for now. After a period of consolidation, gold prices made a decisive move in July. While a pullback is possible, the overall outlook appears weak.”
Despite these challenges, Trivedi believes that the festive season buying, a weak dollar, uncertainty surrounding the US elections, and potential rate cuts by the US Federal Reserve may provide some short-term support for gold prices
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Gold and silver rates today on 25-07-2024: Check latest prices in your city
Gold And Silver Rates Today: The price of 10 gm of 24 carat gold is Rs. 70672.0/10 grams in Delhi, whereas 1 kg of silver is Rs. 85030.0/Kg in Delhi.
Gold and silver rates today: Gold rate decreased on Thursday. The rate of 24 carat gold is ₹7067.2 per gm, down by ₹44.0. The rate of 22 carat gold is ₹6473.6 per gm, down by ₹39.0.
24 carat gold’s rate has changed in the last one week by 0.65%, whereas in the last month it has changed by -2.02%. The silver rate is ₹85030.0 per kg, down by ₹140.0.
Gold Price Drop in various cities
Gold rate in Delhi
Price in Delhi today is ₹70672.0/10 grams. Yesterday on 24-07-2024, the price of gold was ₹75048.0/10 grams, and last week, the price on 19-07-2024 was ₹75533.0/10 grams.
Silver rate in Delhi
Silver rate in Delhi today is ₹85030.0/Kg. Yesterday on 24-07-2024, the price of silver was ₹88370.0/Kg, and last week, the price on 19-07-2024 was ₹91740.0/Kg.
Gold rate in Chennai
Gold rate in Chennai today is ₹70534.0/10 grams. Yesterday on 24-07-2024, the price of gold was ₹75122.0/10 grams, and last week, the price on 19-07-2024 was ₹76124.0/10 grams. In chennai, the gold price drop by Rs. 5,590.0/10 grams.
Silver rate in Chennai
Silver rate in Chennai today is ₹85030.0/Kg. Yesterday on 24-07-2024, the price of silver was ₹88460.0/Kg, and last week, the price on 19-07-2024 was ₹91650.0/Kg.
Gold rate in Mumbai
Gold rate in Mumbai today is ₹70672.0/10 grams. Yesterday on 24-07-2024, the price of gold was ₹75341.0/10 grams, and last week, the price on 19-07-2024 was ₹76050.0/10 grams. In Mumbai, the gold price drop to Rs. 5,378.0/10 grams.
Silver rate in Mumbai
Silver rate in Mumbai today is ₹85030.0/Kg. Yesterday on 24-07-2024, the price of silver was ₹88370.0/Kg, and last week, the price on 19-07-2024 was ₹91740.0/Kg.
Gold rate in Kolkata
Gold rate in Kolkata today is ₹70672.0/10 grams. Yesterday on 24-07-2024, the price of gold was ₹75561.0/10 grams, and last week, the price on 19-07-2024 was ₹75089.0/10 grams.
Silver rate in Kolkata
Silver rate in Kolkata today is ₹85030.0/Kg. Yesterday on 24-07-2024, the price of silver was ₹88370.0/Kg, and last week, the price on 19-07-2024 was ₹91740.0/Kg.
Elements such as the global demand for gold, currency variations, interest rates, and government policies all play a role in the prices. Apart from this, international factors such as the state of the global economy and the strength of the US dollar against other currencies also exert an influence on gold rates in the Indian market.