Duty cut & festive season fuel gold demand
The sharp reduction in import duty on gold just before the festive season and anticipation of bountiful monsoon showers have boosted enquiries and sales of the precious metal in Indore's Sarafa market. The substantial correction of over Rs 3500 per 10 gram in the price of gold, following the import duty cut, has lured investors to purchase bullion and gold ornaments. Jewellers have replenished their inventories, optimistic about the potential for increased sales.
On July 23, 2024, Union finance minister Nirmala Sitharaman representing the
Union Budget, proposed slashing the import duties on gold from 15 per cent to 6
per cent. Indore Sarafa Association secretary Avinash Shastri remarked,
"The demand for bullion has surged due to price correction. Customer
enquiries have escalated, and people are placing orders for bullion. The
decline in prices, occurring just before the festive season, has bolstered
market sentiment."
Jewellers from the Sarafa market opined that the duty cut announced in the Budget is expected to propel the demand for gold and bullion. The Sarafa market boasts approximately 1000 shops, primarily catering to rural customers. On Wednesday, gold at Indore Sarafa market was trading at Rs 71,400 per 10 gram, while silver was priced at Rs 85,100 per kg. “It’s a good dip in prices and time to buy gold. Every year gold prices increase during festival time. So we decided to buy some at this correction,” said Amrita Nair, a customer at a jewellery shop.
Source: https://timesofindia.indiatimes.com/