India's Gold and Silver Prices Plummet Amid Import Duty Cut Speculation

The domestic gold and silver markets experienced a decline in prices despite high global rates. Analysts attribute this trend to speculation surrounding an import duty cut, which could lead to a 9% drop in gold prices if implemented.

Anuj Gupta, a SEBI-registered commodity expert, predicts that if the duty is reduced, landed costs will fall overnight, causing dealers holding high-duty stocks to sell at a discount. This would result in a rapid repricing of the domestic market, with a potential 9% drop in gold prices.

The current trend is characterized as a 'wait-and-see' approach by market participants, who are hesitant to accumulate new stock due to uncertainty over the government's decision on import duty reduction. Bullion traders and the jewellery industry are reportedly demanding a reduction in import duty from 15% to 6%, but no official word has been announced.