Gold and Silver Prices Tumble After Customs Duty Cut

Gold prices fell significantly by Rs 3,350 to Rs 72,300 per 10 grams, while silver plummeted by Rs 3,500 to Rs 87,500 per kg in the local market. This decline follows the government's announcement to cut customs duties on gold and silver to 6 percent, aiming to reduce input costs and boost domestic manufacturing.

On Tuesday, gold prices experienced a sharp decline of Rs 3,350 to Rs 72,300 per 10 grams in the local market. This drop came on the heels of the government's decision to slash customs duties on gold and silver to 6 percent.

The All India Sarafa Association reported that silver prices also took a hit, falling by Rs 3,500 or 4 percent to Rs 87,500 per kg, down from Rs 91,000 per kg in the previous session. Gold of 99.5 percent purity wasn't spared either, plunging Rs 3,350 to Rs 71,950 per 10 grams.

Traders attributed the falling prices to the government's move to lower customs duties, a strategy aimed at reducing input costs and boosting domestic production. This change has sparked a notable reaction in the market, causing significant selling pressure on MCX gold and silver prices.

(With inputs from agencies.)