The government has slashed the import tariff price of gold by $11 per 10 grams, bringing it down to $927 per 10 grams. The move comes amidst ongoing selling pressure on the yellow metal, largely driven by a rebound in the dollar index and profit-taking.

The import tariff price of gold refers to the base price set by the government for calculating the duty levied on gold imported into the country. This price is periodically reviewed and adjusted based on market dynamics, including factors like the dollar index and global gold prices.

Along with gold, the import tariff price of silver has also been slashed by $18 per kilogram, bringing the new price to $1,025 per kilogram. This is the second price revision for silver in recent weeks; earlier in February, the government had raised the base import price by $42 per kilogram.

The import tariff prices for both gold and silver are reviewed and updated by the government every fortnight. This tariff price is used as the base, i.e., the price at which gold and silver imports are valued and on the basis of this price, import duty is levied on the two metals.

As the world's largest importer of silver and the second-largest importer and consumer of gold, India's import policies have a significant influence on global precious metal markets.

India's gold imports in February are likely to fall to around 15 metric tons, the lowest for the month in at least two decades, from 103 tons in February 2024, according to Reuters. In the past decade, on average, India imported 76.5 tons of gold in February, it added.

Gold futures rise on spot demand on March 3

Gold prices on Monday rose by ₹478 to ₹84,697 per 10 grams in futures trade as speculators created fresh positions on a firm spot demand as the value of the dollar dropped and rising tensions around the world made more people want to buy gold. The delayed peace deal between Ukraine and Russia and unclear US tariff policies also made gold a safer choice for investors.

On the Multi Commodity Exchange, gold contracts for April delivery traded higher by ₹478 or 0.57% at ₹84,697 per 10 grams in a business turnover of 13,686 lots.

Fresh positions built up by participants led to a rise in gold prices, analysts said.

Globally, gold futures increased 0.20% to $2,863.46 per ounce in New York.

Courtesy: CNBC TV 18