Gold Price Today After Budget 2024: The Union Budget 2024 has significantly impacted the economy, especially in the commodities market, leading to notable changes in the prices of gold and silver.
Current Gold Price in India
On July 24, the prices of gold in India were approximately:
- 24-Carat Gold: Rs 70,850 per 10 grams
- 22-Carat Gold: Rs 64,940 per 10 grams
24-carat gold, being the purest form of gold, is preferred by investors, whereas 22-carat gold, which includes a slight alloy mix, is more durable and commonly used for jewelry.
Current Silver Price in India
As of July 24, the price of silver in India was Rs 87,900 per kilogram. Like gold, silver prices are influenced by market trends and economic policies.
Impact of Budget 2024 on Gold and Silver Prices
The Budget 2024 introduced several key changes that affected the prices of gold and silver. One of the most significant changes was the reduction in the basic customs duty (BCD) on various forms of precious metals. Here are the details:
Gold/Silver Coins and Bars: The customs duty was reduced from 15% to 6%.
Gold and Silver Dore: The customs duty was reduced from 14.35% to 5.35%.
ALSO READ: Income Tax Budget 2024 LIVE: Major Relief for Salaried Class – Are You Ready to Pay Less Tax?
ALSO READ: Budget 2024 Highlights: Massive Financial Support for Youth, Education, and Regional Development
ALSO READ: OnePlus Nord 4 vs Nord 3: Which Budget King Should You Buy?
Reasons Behind the Gold Price Drop
1. Customs Duty Reduction: The substantial reduction in customs duty made imported gold and silver cheaper, leading to a decrease in their domestic prices.
2. Economic Policies: The budget included measures to control inflation and boost economic growth through increased spending on infrastructure and social welfare programs. With better control over inflation, gold and silver’s appeal as safe-haven investments diminished, leading to lower prices.
3. Strengthening Rupee: The budget’s policies also contributed to strengthening the Indian Rupee against the US Dollar. A stronger rupee makes imports cheaper, reducing the cost of gold and silver and contributing to the price drop.
4. Market Sentiment: Positive sentiment in the market following the budget announcement led investors to move away from safe-haven assets like gold and silver, further reducing their prices.
Implications for Consumers and Investors
For consumers, the reduction in gold and silver prices is beneficial, especially for those planning to buy jewelry. The lower prices make it more affordable to purchase high-quality gold and silver items.
For investors, the situation is more complex. While the reduced prices might seem like a buying opportunity, it is essential to consider the broader economic context and potential future trends. Here are some practical tips:
1. Monitor Economic Indicators: Keep an eye on key economic indicators such as inflation rates, interest rates, and currency movements. These will provide insights into the potential direction of gold and silver prices.
2. Stay Updated on Policy Changes: Government policies can change, and staying updated on any new announcements or adjustments is crucial for making informed investment decisions.
3. Diversify Your Portfolio: While gold and silver are valuable investments, it is important to diversify your portfolio. Consider a mix of assets, including equities, bonds, and real estate, to manage risk effectively.
4. Consult Financial Advisors: If you are unsure about how to navigate the post-budget market, consulting with financial advisors can provide personalized advice tailored to your financial goals.
Conclusion
The Union Budget 2024 has brought significant changes that have influenced the prices of gold and silver. The reduction in customs duty and the focus on economic growth and inflation control have led to a notable decrease in the prices of these precious metals. By staying informed and adopting a diversified investment strategy, consumers and investors can navigate the post-budget landscape effectively and make the most of their investments in gold and silver.
