Taking a cue from international price trend, gold prices in India fell by 1.49 percent today. In the spot market gold is being available at Rs 33624 per 10 gm as compared Rs 34126 per 10 gm on Friday making gold cheaper by Rs 502 per 10 gm.
The US and China had agreed on Saturday to restart trade talks after President Donald Trump offered concessions including no new tariffs in order to reduce tensions with Beijing, China too had agreed to make unspecified new purchases of US farm products and return to the negotiating table.
Analyst, however, feel this drop is unlikely to give a spurt in demand as consumers are expecting a duty cut in the upcoming Union budget that will be tabled on July 5.
Gold now attracts an import duty of 10 percent and a GST of 3 percent. A duty cut will bring down gold prices further from the current price level.
Surendra Mehta, National Secretary, India Bullion & Jewellers Association said “The trade is expecting a cut in import duty. Our anticipation is that there will be a 2 percent import duty cut. Gold price may remain steady or may even fall if the trade deal between the US and China is clinched in the coming weeks.