Union Budget 2024: Gold, Silver prices to come down as custom duty slashed to 6%

NEW DELHI: Gold and Silver prices are expected to come down after Union finance minister Nirmala Sitharaman announced a reduction in customs duties on gold and silver to 6% from 15% while presenting the Union Budget on Tuesday. Custom duty on platinum is also reduced to 6.4%.
"To enhance domestic value addition in gold and precious metal jewellery in the country, I propose to reduce customs duties on gold and silver to 6 per cent and that on platinum to 6.4 per cent," said Union finance minister Nirmala Sitharaman in her budget speech on Tuesday.
An increase in gold demand from India has the potential to drive up global prices, which reached an all-time high this year. However, this could also widen India's trade deficit and put additional strain on the already struggling rupee.
Meanwhile, shares of gold and jewellery retailers witnessed a significant surge following Sitharaman's announcement on boursed.
Senco Gold's stock soared by 6.16 per cent, reaching Rs 1,000.80 per share while Rajesh Exports witnessed a 5.49 per cent increase, trading at Rs 313.90. PC Jeweller hit its upper circuit limit with a 5 per cent jump, trading at Rs 74.16 per share.
Titan Company's shares rise by 3.66 per cent, reaching Rs 3,371.65 per piece. Tribhovandas Bhimhji Zaveri's stock rose by 2.79 per cent, trading at Rs 140.20, and Kalyan Jewellers India gained 1.54 per cent, with its shares trading at Rs 537.05 on the bourse.
Sitharaman further announced an import duty exemption for 25 essential minerals, including lithium as it has been actively seeking ways to secure a stable supply of lithium, crucial for the production of electric vehicle batteries.