Sat Feb 01 15:30:00 UTC 2025: **Gold Prices to Drop After Union Budget 2025 Cuts Customs Duty**
NEW DELHI – The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman, includes a significant reduction in customs duty on gold and silver, promising lower prices for consumers in the coming months. The government slashed the customs duty from 15% to 6%, a move expected to take effect from April 1st, 2025.
Currently, the price of 10 grams of 22-carat gold exceeds ₹77,000. The budget announcement suggests that consumers planning to purchase gold may want to wait until after April, when prices are anticipated to fall substantially due to the duty reduction.
The government’s decision aims to increase gold and silver liquidity in the domestic market, boosting demand and potentially curbing illegal imports. The reduced duty is expected to encourage increased legal imports by traders, stimulating the domestic gold manufacturing sector and leading to higher exports, thereby generating more tax revenue for the government. This move is also seen as positive news for major gold companies, potentially boosting their stock market performance.
The Finance Minister’s announcement is a welcome relief for middle-class families and gold investors alike, signaling a potential period of more affordable gold prices in the near future. Consumers are advised to delay gold purchases until after April 1st to take advantage of the expected price decrease.
First Piper 