Finance Minister Nirmala Sitharaman announced a cut in gold import duties in Budget 2024. Because of this, people in India, the world’s second-largest gold market, have quickly started buying gold to benefit from lower prices.

This increase in buying is especially noticeable with the wedding season coming up. Gold prices have dropped from Rs 72,609 to Rs 69,194 per 10 grams after the duty was reduced from 15% to 6%. The reduction has led to a rise in gold demand, with some jewellers seeing up to a 20% increase in sales.

Gold prices on the Multi Commodity Exchange (MCX) fell by Rs 1,159, or about 1.7%, to Rs 67,793 per 10 grams, in line with international trends. Silver prices also dropped sharply.

Internationally, gold prices are falling as investors wait for important US economic data that could influence when the Federal Reserve might cut interest rates. In Asian markets, gold and silver prices have dropped due to concerns about China’s economy. Analysts believe that upcoming festive buying and other factors might offer some support to gold prices in the short term.