Gold Prices In Kerala Hit Their Lowest In July After Budget Announcement

Following the announcement of the Union Budget 2024, where customs duties on gold, silver, and platinum were cut, gold prices in Kerala dropped by Rs 2,000 per sovereign.

One gramme of gold in Kerala is now Rs 6,495, while one sovereign costs around Rs 51,960.

Read Also: Budget 2024: Custom Duties On Gold And Silver Cut To 6%

With the Rs 2,000 decrease per sovereign, gold prices hit their lowest level this month. The recorded price for the month on July 1 was Rs 53,000 per sovereign.

Finance Minister Nirmala Sitharaman proposed a reduction of 6 percent custom duty on gold and silver and 6.4 percent on platinum with the aim of improving domestic value addition in gold and precious metal jewellery in India.

Kerala is not the only state to witness a sharp decrease in gold prices, though. Major players in several states reportedly saw their share prices rise by over 10 percent during intraday trades on Tuesday.

Earlier, the customs duty charged on gold and silver was 15% and 15.4% for platinum. The customs duty on platinum was raised to 15.4% from 10.75% earlier in October 2022, while gold was increased to 15% in July 2022.

Read Also: Budget 2024: New Tax Regime Vs Old Tax Regime

Sitharaman also announced a reduction in the cost of production for steel and copper. “I propose to remove the BCD on ferro nickel and blister copper. I am also continuing with nil BCD on ferrous scrap and nickel cathode and concessional BCD of 2.5 percent on copper scrap,” she added.

Chairman and founder of Vignaharta Gold, Mahendra Luniya, said that in fiscal year 2023, India’s gold imports totaled an estimated Rs 2.8 lakh crore. At a 15 percent import duty rate, the industry’s customs duty payout is estimated at Rs 42,000 crore, he added, as per the Economic Times.