Gold has started recovering from the sharp fall after the budget and its prices have once again started rising. The latest geopolitical tensions have helped the gold prices to rise. On the other hand, there are estimates of government support for prices at the domestic level.
Latest gold rates on MCX
On Friday, the price of the futures deal with October 2024 expiry on MCX i.e. Multi Commodity Exchange stood at Rs 69,792 per 10 grams. During trading, gold once crossed the level of Rs 70 thousand per 10 grams. If we look at the international market, gold finally closed at $ 2,486 per troy ounce after touching the level of $ 2,500 on Friday’s Comex.
This is the reason for the rise in prices
Geopolitical tensions are being considered the most responsible for the rise in gold prices at the end of the week. Ismail Haniya, one of the top Hamas leaders in Iran, was killed. Israel, which is already at war with Hamas, is being accused of the murder. After this incident, the tension between Israel and Iran, the two major powers of West Asia, has increased.
Gold became so cheap after the budget
The budget that came last month made gold and other precious metals cheaper. Finance Minister Nirmala Sitharaman proposed to reduce the customs duty on gold from 15 percent to 6 percent. After that, the price of gold fell sharply. Due to the reduction in customs duty, the price of gold fell by about Rs 5000 per ten grams and fell below 68 thousand.
Preparation to increase GST on gold and silver
Apart from global reasons, domestic reasons can also increase the prices of gold. Actually, people are afraid that after removing the customs duty, the government can now increase the GST on gold. At present, GST is levied on gold and silver at the rate of 3 percent. The government can increase it to 5 percent.
