– Finance Minister Nirmala Sitharaman announced a cut in import duty on gold and silver from 15% to 6% in India.
– Following the Budget announcement, prices of gold and silver in India declined by around Rs 250 and Rs 400 respectively.
– Bullion prices are highly volatile after the Budget announcement and ahead of expiry on Thursday.
– The finance minister also proposed to cut basic customs duty for gold and silver dore from 14.35% to 5.35%.
– The outlook for gold remains strong despite the import duty cut, as it will increase demand for physical gold domestically.
– The gems and jewellery exporters have been demanding for years to cut duties on precious metals to boost exports and manufacturing.