Gold prices in India have experienced a significant decline, dropping by Rs 5,000 per 10 grams following recent cuts in customs duty. The steep fall was witnessed after Union Finance Minister Nirmala Sitharaman proposed the custom duty cut while presenting the budget on July 23.The gold prices on Friday recorded at Rs 69,820/10 grams for 24 carat which was Rs 72,609/10 grams on July 23. On the other hand, the price for the 22 carat gold stood at Rs 66,874/10 grams on July 23, which now stands at Rs 62,351/10 grams on Friday. This reduction in customs duty has made gold imports cheaper, directly impacting domestic prices. The governments decision aims to curb smuggling and boost legal imports of the precious metal, aligning with the broader economic strategies to stabilize the market and support the jewellery industry.The cut in customs duty has contributed to a more accessible price range for consumers, potentially increasing demand and benefiting the retail gold market. However, this price fluctuation also reflects the complex interplay of global market trends, currency exchange rates, and domestic economic policies.Experts believe that the sharp cut will help in tackling the smuggling due to cuts and will help boost the organized jewellery business. Sources have also claimed that the decrease in gold prices has led to a significant rise in the sale of jewellery as people are rushing to take advantage ahead of the festive season.
