Govt cuts base import prices of gold, prices at 6-month lows


Indian government has reduced the base import prices of gold and some edible oil. The government revises base import prices of edible oils, gold and silver every fortnight, and the prices are used to calculate the amount of tax an importer needs to pay. India is the world’s biggest edible oils importer while meets most of its domestic gold requirement through imports. 

Base prices for all commodities are in dollar per tonne, except for gold and silver. The gold tariff is in dollar per 10 grams. The base tariff value on gold has been cut to $549 per 10 grams, from $557 per 10 grams earlier. 

Gold is an international commodity, and it is priced in US dollars. So, the price movement of the yellow metal in India is closely linked to the greenback and import duties.

In July, the government had raised its basic import duty on gold to 12.5% from 7.5%, leading to a sharp jump in domestic prices vs global rates. India meets most of its gold demand through imports. 

In India, gold prices in India remained near 6-month lows as MCX futures fell 0.16% to 49,231 per 10 gram. Gold is down about 1,500 so far this week, from Monday’s highs. 

In global markets, the yellow metal struggled near two-year lows amid elevated US dollar and prospects of aggressive US rate hikes. Spot gold was t $1,664.48 per ounce and has fallen 3% so far this week.


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