Gold, silver tumble, govt cuts import tariff value

Gold, silver tumble, govt cuts import tariff value

The government on Monday slashed the import tariff value of gold to $421 per ten grams and that of imported silver to $709 per kg, considering the falling trend in global prices.

Tariff value is the base price on which the customs duty is determined to prevent under-invoicing.

Last month, the tariff value of gold was at $459 per 10 grams and silver at $737 per kg.
The notification in this regard has been issued by the Central Board of Excise and Customs (CBEC).

On Monday, gold and silver, tumbled in the national capital on heavy selling by stockists, driven by a weak global trend.

While gold tumbled by Rs 320 to Rs 27,320 per 10 grams, silver lost Rs 800 to Rs 41,500 per kg on reduced offtake by jewellers and industrial units.

The sentiment turned bearish after gold fell in global markets on the prospect that reduced monetary stimulus from the US Federal Reserve may spur a stronger dollar and erode demand for a store of value.

Government has reduced the import tariff value of gold as global prices in Singapore have been volatile in the last few days. Global prices today fell by 1.4 per cent to $1,278.94 an ounce and silver by 2.8 per cent to $19.55 an ounce. A similar trend was seen in silver rates as well.

India's gold import in the second quarter of the current fiscal is expected to more than halve to 150 tonnes, as against around 350 tonnes in the April-June period of the 2013-14 fiscal, as per the Bombay Bullion Association.