Prime Minister Modi’s appeal and the government’s decision to increase the import duty has seen a big drop in the prices of gold and silver. Gold fell by ₹13,000 and silver by ₹46,000, aimed at saving foreign exchange.
PM Modi And Gold Price:Between an appeal by Prime Minister Narendra Modi and the subsequent big decision of the government, the prices of gold and silver have seen a huge erosion. In the last few weeks, gold prices have fallen by over Rs 13,000 and silver by around Rs 46,000 per kg. People who were avoiding buying in these circumstances will feel a big relief now. While investors are trying to understand why there has been such a big drop after all.
On May 10, PM Modi made a special appeal to the countrymen. At that time, in view of rising tensions in West Asia, high crude oil prices and increasing burden on foreign exchange, people were told to avoid wasteful spending like gold purchases and foreign travel for a year if possible. He said that India needs to save foreign exchange. And reducing the import of gold will strengthen the country’s economy.
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At that time, according to the Indian Bullion Association, 24 carat gold was trading at around Rs 153,140 per 10 grams and silver at around Rs 262,350 per kg. But by June 28 the picture had completely changed. Gold prices fell to around Rs 139,873 per 10 grams, while silver prices fell to around Rs 216,541 per kg, i.e. gold by around Rs 13,267 and silver by around Rs 45,809.
However, the prime minister’s appeal was not the only reason. Another major decision of the government is also considered important. The government increased the effective import duty on gold and silver from 6 percent to 15 percent. It includes both customs duty and agricultural infrastructure and development cess. The move was aimed at reducing gold imports, saving the dollar and controlling the trade deficit.
