Gold Prices Jump Rs. 1200 As Government Hikes Import Duty, Check Today's Gold Rates Here

In India, gold rates are already marginally bullish due to high inflationary concerns. Now, as the union government has hiked the basic customs duty on gold from 7.5% to 12.5%, gold rates have again jumped in the country. Today, the 22-carat gold rate is quoted at around Rs. 47,850/10 grams, and 24-carat gold rate is quoted at around Rs. 52,200/10 grams. The 22-carat gold rates have jumped by Rs. 1200, while the 24-carat gold rates have jumped by Rs. 1310/10 grams. The market of the yellow metal was marginally bearish in the past two days, as gold rates dropped sharply by around Rs. 1000. However, the present hike again dragged the yellow metal on track.

However, the government's decision to hike the import duty on gold to 12.5% will further dampen the retail demand. This month India will not observe any major wedding season or festive season. So, jewellers were already concerned about their sales. Now, the additional import duty imposed on the metal will hamper the profitability of jewellers. The mounting inflation concerns kept gold's position as a safe haven intact. Gold rates jumped up sharply globally due to a hedge against inflation, which was reflected similarly in India. However, the import duty hike will impose an extra charge in addition to the global market graph.

Today, in the international markets, gold rates have been sharply bearish, and dropped to around $1795/oz level in the futures market. However, the hike in import duty did not allow Indian gold rates to fall. Also, gold attracts a 3% GST charge in the country.
A report stated that the trade deficit in May was sharply high at $24.3 billion. The union government thus is scrutinizing the import data, especially gold. Amid worries about the price rise in the current account deficit (CAD), gold imports have risen significantly. In May gold imports have gained by around nine times to $7.7 billion compared to the last year. So, the government has decided to hike the import duty on gold.

Today, the Comex gold futures were quoted at $1,797.80/oz, falling by 0.52%, from the last trading day. Yesterday it was last quoted at $1,807.30/oz. The spot gold prices were last quoted at $1797.10/oz, falling by 0.63%, from the last trading day. However, the US dollar index in the spot market stood at 104.91, gaining by 15%. In India, the Mumbai Commodity Exchange (MCX) gold in August future was quoted at Rs. 51643.00/10 grams, gaining by 2.23%, from the last trading day. While the global markets have seen gold prices fall, the same has not happened in India, as the rupee has simultaneously depreciated moving gold prices higher. India imports much of its gold requirements and demand for the precious metal has surged over the last few months.

Gold rates are quoted differently, daily. Today's gold rates in major Indian cities follow: