Modi government hikes base import price of gold and silver
What's the story
In a major development, the Indian government has increased the base import price of gold and silver. The base import price for gold has been hiked by $41 per 10g, now at $938 per 10g, as per a notification from the Central Board of Indirect Taxes and Customs (CBIC). The base price for silver has also been hiked by $42 per kg.
Market response
Global trends influence India's import price revision
The revision in base import prices comes in light of global price trends, especially the increasing demand for gold as a safe-haven asset amid intensifying trade tensions between the US and China. This rise in base price ensures that import duties, which are applied as a percentage of the base price, reflect current market conditions accurately. The surge in silver prices also required an adjustment in its import cost.
Price hike
Gold prices in India today
On Monday, gold prices in India jumped, mirroring the global trends. The 24K gold now costs ₹8,662 per gram while 22K gold is priced at ₹7,940 per gram. The price of 10g of 22K gold rose by ₹500 to ₹79,400 and 100g of the same quality rose by ₹5,000 to ₹7,94,000.