Gold Custom Duty Reduced: MCX Gold Witnesses Rally, Check Expert Comments On Gold Outlook

New Delhi: Gold price rose on the Multi Commodity Exchange (MCX) on Wednesday. Gold futures, maturing on August 5, 2024, stood at Rs 68,814 per 10 grams on the MCX at 11.03. Against its previous closing of Rs 68,510, Gold opened at Rs 68,790 per 10 gms on Wednesday. 

Meanwhile, silver futures, maturing on September 5, 2024, were trading at Rs 85,209 per kg on the MCX. It opened at Rs 85,085 against the previous close of Rs 84,919 per kg.

Gold prices inched higher on Tuesday, poised to break a four-day losing streak as investors awaited key U.S. economic data later in the week.

With a 96% chance of a rate cut by the Federal Reserve in September, as indicated by the CME FedWatch Tool, all eyes are on the upcoming U.S. GDP report and the Fed's preferred inflation gauge, the personal consumption expenditures price index, said Prathamesh Mallya, DVP- Research, Non-Agri Commodities and Currencies, Angel One Ltd.

Additionally, India's reduction of import duties on gold and silver is expected to boost retail demand and curb smuggling, potentially driving global gold prices upward, he added.

Giving the Outlook on the precious metal, Mallya said Gold prices are likely to remain under pressure, as investors await crucial U.S. economic data later in the week.

Announcing the Budget 2024 in Parliament on July 23, Finance Minister said that customs duty on Gold and Silver will be reduced to enhance domestic value addition. "To enhance domestic value addition in gold and precious metal jewellery in the country, I propose to reduce customs duties on gold and silver to 6 percent and that on platinum to 6.4 percent," FM had said.