Indian gold futures rise over 2 per cent post budget with import duty unchanged
On the flip side, jewellers like Vijay Jain or Orra believe that people who had held back from purchases expecting a duty cut would now come back to the market.
By ET Bureau | Updated:
MUMBAI: Gold prices in the domestic market increased after the Union Budget failed to deliver a widely expected import duty cut on the yellow metal.
Futures rate in the domestic gold market, which had priced in a cut of 2% in duty rate, increased 1.66% to Rs 28,070 per 10 gm. Media reports had suggested that finance minister Arun Jaitley may reduce import duty on gold from existing 10%.
Jewellers such as Vijay Jain of Orra said people who had held back gold purchases expecting a duty cut would now come back to the market.
Sandeep Kulhalli, vice president retail and marketing at Tanishq, one of the largest gold jewellery brands in the country, said gold demand in July and August is typically lacklustre. He said gold prices in the country are influenced more by currency rates and duty plays only a small role.
Futures rate in the domestic gold market, which had priced in a cut of 2% in duty rate, increased 1.66% to Rs 28,070 per 10 gm. Media reports had suggested that finance minister Arun Jaitley may reduce import duty on gold from existing 10%.
Jewellers such as Vijay Jain of Orra said people who had held back gold purchases expecting a duty cut would now come back to the market.
Sandeep Kulhalli, vice president retail and marketing at Tanishq, one of the largest gold jewellery brands in the country, said gold demand in July and August is typically lacklustre. He said gold prices in the country are influenced more by currency rates and duty plays only a small role.
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