Gold rates have touched a new lifetime high today 58,060 per 10 grams on the Multi Commodity Exchange (MCX). Gold futures contracts for February 2023 started rising amid Finance Minister Nirmala Sitharaman’s budget speech and climbed to its record high by the time the finance minister concluded her speech in Parliament. Highlighting the connection between the rise in gold prices and FM Sitharaman’s budget speech, commodity market experts said gold prices today hit new highs as the budget increased imports of silver in bars, bars and commodities. They have been asked to increase import duty on gold and gold with proposals to increase duty. Platinum.
On why gold prices are rallying today, Nirpendra Yadav, Senior Commodity Research Analyst, Swastika Investmart said, “The Government of India increased the import duty on gold bars and gold strings to 12.5% at the beginning of this financial year. and 11.85%. Now in the union. In the 2023 budget, the government has decided to increase the duty on articles made from them to widen the duty gap. Which will further increase the prices of gold in the domestic market. And silver Increase in import duty on K wire, bars and items will support silver prices in near term. On the other hand, higher duty on precious metals will support Indian Rupee.
Anuj Gupta, Vice President – Research AT, speaking on the reasons behind gold prices climbing to a new all-time high today IIFL Securities said, “Gold prices in the domestic market are moving up due to the proposal of the new Government of India (GoI) to increase the import duty on silver rods, bars and articles to align them with gold and platinum. Budget proposal has gone down well. The rally in the precious yellow metal is likely to continue further among bullion market participants we Fed officials are also indicating softening of interest rates growth, ,
Anuj Gupta of IIFL Securities advises gold investors to hold on to the possibility of further upside in gold prices 58,500 per 10 gram level in the immediate short term. This is expected to impact the price of gold in the medium term, he said. The budget proposal of Rs 60,000 in the domestic market is going to boost the demand for physical gold in the domestic market, thereby reducing the demand supply for the precious commodity.
Anticipating a positive impact of Budget 2023 proposals on the gems and jewelery business, Colin Shah, MD, Cama Jewellery, said, “Monetization of gold without charging any capital gains on conversion of physical gold into electronic gold receipts and vice versa There will be help. This announcement may help in reducing the import of gold.”
Presenting the Union Budget 2023, Finance Minister Nirmala Sitharaman said, “Customs Duty on Door and Bar Sleep and Platinum were extended at the beginning of this financial year. I now propose to increase the duty on articles made from them to widen the duty differential. I also propose to increase the import duty on silver cord, bars and articles to align them with that of gold and platinum.”
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint. We advise investors to do due diligence with certified experts before making any investment decision.
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