The Finance Minister today said that the custom duty on gold and silver would be rationalized to bring down gold and silver prices in her Union Budget 2021-22 speech. This is a good move for those wanting to buy gold, given that we have seen gold and silver prices rally last year, following the outbreak of Covid 19.
Several investors have been on the sidelines and physical gold demand from India has slumped. However, one has to still read the fine print, to see the extent that gold and silver prices would fall due to the duty rationalization.
Gold prices in India are currently trading at Rs 49,000 per 10 grams are likely to fall a little lower, following the custom duty rationalization.