New Delhi. The effect of the announcement of reduction of Basic Custom Duty (BCD) on gold by Finance Minister Nirmala Sitharaman in the General Budget 2024-25 is visible in the market. The bullion markets have returned to their glory the very next day of the Finance Minister's announcement. Along with investors, the purchase of jewellery for weddings has also started. People associated with the market say that the purchase of gold and silver jewellery has increased by about 35 percent in the last four days.

People are buying gold for weddings

Shopping is being done for future weddings. The Finance Minister has reduced the customs duty on gold and silver imports from 15 percent to 6 percent. This has also reduced the price of gold and silver. India Bullion and Jewellery Association Secretary Surendra Mehta says that the decision to reduce customs duty has been good for everyone except those involved in illegal gold trade. Due to the rising price of gold, the number of customers in the bullion markets had decreased. Now people will return to the market again. People have also started shopping for investment purposes.

Finance Ministry officials say that the real purpose of reducing customs duty was to reduce smuggling. Especially the import of cheap gold coming through Dubai will end. Due to the trade agreement between India and the United Arab Emirates, till now there was an eight percent duty on the import of gold and silver. Now six percent duty will be levied on importing gold from anywhere. Rahul Kalantri, Vice President (Commodities) of Mehta Equities, says that the price of gold in India is at its lowest level in three weeks and the price of silver is at its lowest level in 11 weeks.

This is not just the effect of the new provision of the general budget but also of the American market. The Federal Bank in America has indicated that it will not reduce rates in the near future. Apart from this, after the rate cut by the Central Bank of China, there has been a huge sale of gold and silver in the international market. The reason for this is that the Central Bank of China is buying gold from abroad.

Chairman of All Bullion and Jewelers Association Yogesh Singhal said, 'People who have weddings in their houses in the coming days are coming. Along with this, the number of customers investing in gold has also increased. The number of customers has increased by about 30 percent compared to normal days. The reduction in customs duty has given energy to the market. Since the budget, the price of 10 grams of gold has decreased by about five thousand rupees.