Gold Tariff Value Slashed: Factors impacting price of the yellow metal in India
After facing selling pressure, the tariff value on gold has been fixed at $927 per 10 grams by the Indian government.
The import duty on gold has effectively come down to $927 per 10 grams from February 28. Earlier, on February 14, the Central Board of Indirect Taxes and Customs (CBIC) had raised the base import price of gold by $41 per 10 grams, making it $938 per 10 grams.
The import tariff price of gold is a government-set base price for calculating duty on imported gold, periodically reviewed and adjusted based on market dynamics.
In addition to gold, silver’s import tax price has been lowered by $18 per kilogram, making it $1,025 per kilogram. The government increased the base import price of silver by $42 per kilogram earlier in February.
The government reviews and updates import tariff prices for gold and silver every fortnight, which serve as the base for valuing gold and silver imports and determining import duty.
Gold prices remained flat trading around $2,897 on Tuesday, mostly due to investor expectations that the US Federal Reserve would keep interest rates high for an extended period.
This interest rate outlook has put pressure on non-yielding assets such as gold, which struggle to compete with comparatively higher-yielding assets like the Dollar.
However, concerns about Trump’s protectionist policies, potentially leading to a global trade war, are causing investors to be cautious about riskier assets, potentially supporting the safe-haven Gold price. US markets tanked on Monday.
The current price of gold in India is Rs 84,820 per ten grams.
The demand for gold has kept the price drifting upwards. Of late, global central banks have been a big buyer of gold. Here’s why central banks are accumulating gold in hundreds of tonnes.
The price of gold in US dollars is hovering around $2900 and is expected to touch $3000. The gold rate today in India is Rs 84,820. Will gold touch Rs 1 lakh in 2025? Here are some reasons that may play their part in pushing gold to Rs 1,00,000 per ten grams this year.
As global factors including Trump’s tariffs, the US Fed monetary policy, the dollar strength etc will remain a dominant factor influencing gold demand, you as an investor need to be invested in gold with an eye on one’s asset allocation. The long-term returns of equity and gold have a revealing story to tell.