Centre hikes import duty on gold, silver jewelery parts
The Finance Ministry has raised the import duty on gold and silver findings (small parts) and coins of precious metals from 11% to 15%, as per Reuters. This decision aims to prevent evasion of duties on gold and silver bars, following a recent uptick in imports of gold findings such as hooks, clasps, and other components used in jewelery crafting. The Finance Ministry has also increased the import duty on spent catalysts containing precious metals from 10.1% to 14.35%.
When does new tax rate come into effect?
New rates have been made effective from January 22. India holds the position of being the world's second-largest consumer of gold, with almost all supplies coming from imports. Today, gold prices saw an upward trend during the morning trading session in the domestic futures market, influenced by positive global cues. At the time of writing, MCX Gold traded 0.40% higher at Rs. 62,118 per 10 gram.
Gold prices rise amid US dollar dip, rate cut expectations
Internationally, gold prices rose as the US dollar weakened, with investors eagerly awaiting interest rate decisions from various central banks and a series of economic data set to be released in the United States later in the week. Since gold is priced in dollars, a weaker dollar is beneficial for the yellow metal, making it more appealing due to lower opportunity costs.
