The government revises tariff value on gold every 15 days and this time the reduction in tariff value by $5 per 10 gms comes just ahead of the auspicious Akshaya Tritiya festival, making the precious yellow metal cheaper by 1% for purchase during the auspicious festive-buying. In the previous instance, tariff value was reduced by $9 in mid-March to $417 per 10 grams.
As it is in the last one-month, prices of gold have dropped as much as 2% to Rs. 31,500 per 10 gm and this tariff value cut will add to gold customers' delight.
Experts foresee further fall in the gold price till June due to appreciation in the domestic currency against the greenback. In Thursday's early morning trade, rupee was seen trading at 69.47 per US dollar.
In the first two months of the CY 2019, gold prices reached a high of Rs. 35,000 per 10gm and a drop in price is expected to provide a significant boost to its demand in India in the second quarter ending June.
In Wednesday's session, the gold rate slid after the US Fed kept the interest rates steady while hinting at no rate cut during the year. In India however the gold prices plunged more on account of appreciation in the rupee and drop in oil prices.