In a landmark move, Prime Minister Narendra Modi’s government unveiled its first budget for 2024 with a focus on the precious metals market, sending shockwaves through trading floors. Finance Minister Nirmala Sitharaman’s announcement of revised customs duties on gold and silver triggered an immediate and steep decline in prices.

As Sitharaman concluded her budget speech, gold prices nosedived by nearly Rs. 4,000 per 10 grams. This swift adjustment followed a peak on the Multi Commodity Exchange (MCX), where gold futures had soared to Rs. 72,850 per 10 grams earlier in the day. However, the market reaction was swift, with prices plummeting to Rs. 68,500 per 10 grams in response to the proposed duty cuts.

The sudden drop amounted to a staggering Rs. 4,350 per 10 grams within hours, marking a significant reversal from Monday’s closing price of Rs. 72,718 per 10 grams.

Meanwhile, silver prices mirrored this trend on the MCX, initially climbing to Rs. 89,015 per kilogram before following gold’s downward trajectory. Silver, too, experienced a notable decline, ultimately falling by Rs. 4,740 to Rs. 84,275 per kilogram.

In her budgetary address, Sitharaman detailed the government’s decision to slash customs duties on gold and silver from 10% to 6%, comprising a 5% basic customs duty and a 1% Agri Infrastructure and Development Cess. Additionally, platinum saw its duty reduced to 6.4%. The Finance Minister also announced reductions in customs duties on imported jewelry, aligning with the administration’s broader economic strategies.

The adjustments have drawn varied responses from industry experts and traders alike, highlighting the budget’s potential implications for the commodities market and beyond.