Gold prices continued their decline on Thursday, July 25, following Finance Minister Nirmala Sitharaman’s announcement of a significant reduction in Customs duty on gold, silver, and platinum from 15% to 6%. This move was aimed at lowering gold prices, which had reached record highs. In India, 22K gold prices fell by ₹950 to ₹64,000 per 10 grams. Globally, gold prices dropped by over 1%, attributed to profit-taking as investors awaited US economic data that could hint at future Federal Reserve rate cuts. Analysts have a mixed outlook on gold, with potential support expected if rate cuts occur. The reduction in India’s Customs duty is anticipated to drive down retail prices and reduce grey market activity.
5 Key Points:
- Customs Duty Reduction: Finance Minister Nirmala Sitharaman announced a reduction in Customs duty on gold, silver, and platinum from 15% to 6%.
- Domestic Price Drop: In India, 22K gold prices fell by ₹950 to ₹64,000 per 10 grams on July 25.
- Global Price Decline: Globally, gold prices fell more than 1% on the same day, with spot gold down 1.2% and US gold futures down 1.8%.
- Investor Profit-Taking: The decline in global gold prices is attributed to profit-taking as investors awaited US economic data.
- Mixed Investment Outlook: Analysts are watching for potential Federal Reserve rate cuts, which could enhance gold’s appeal as a non-yielding asset and support prices.
