The basic import tax on gold has increased by 5% according to the central government. The fundamental import tax has increased from 7.5 percent yesterday to 12.5 percent today. According to reports, the choice was made in light of the falling value of the Indian rupee relative to the US dollar. The majority of the nation’s gold needs are imported.
On Friday, gold prices increased by Rs 1,200. In comparison to its previous close of Rs 46,650, the price of 22 carat gold was Rs 47,850 per 10 grammes today. In the meantime, the cost of 24 karat gold increased by Rs 1,310. Compared to its previous closure of Rs. 50,890, the price of 24 karat gold was Rs. 52,200.
As a result of aggressive monetary policies from leading central banks and a strong US dollar, investors shied away from gold prices on Friday, setting the stage for a third straight weekly loss. After reaching a more than six-week low of $1,801.50 in the previous session, spot gold was down 0.2 percent at $1,804.26 per ounce as of 0258 GMT. American gold futures fell by 0.1 percent to $1,805.00. Following their worst quarter since the beginning of 2021, gold prices have fallen by around 1.2 percent this week, according to a Reuters report.
“Gold imports have increased dramatically. 107 tonnes of gold were imported in May, and there have been considerable imports in June as well. The current account deficit is under pressure as a result of the spike in gold imports. The first official indicated that the customs tariff had been raised to reduce the import of gold” according to officials.