Gold Hits 3-Week Low, Silver at 11-Week Low: Check 22, 24 Carat Rates in Your City on July 26

New Delhi, July 26, 2024 – Gold prices in India have dropped below Rs 70,000 per 10 grams today, marking a significant dip. The 24-carat gold is now priced at Rs 69,940 per 10 grams, while 22-carat gold, preferred for jewelry due to its durability, stands at Rs 64,140 per 10 grams. This decline follows the government’s recent reduction of customs duties on gold and silver.

The government announced a cut in basic customs duty (BCD) on various products, including precious metal coins, gold/silver findings, and gold and silver bars, from 15% to 6%. The duty on gold and silver dore has been reduced to 5.35% from 14.35%. Meanwhile, silver prices are at Rs 84,500 per kilogram.

Retail Gold Prices on July 26, 2024

Below are the gold rates in different cities across India for both 22-carat and 24-carat gold:

City	22 Carat Gold Rate (Rs/10 grams)	24 Carat Gold Rate (Rs/10 grams)
Delhi	64,140	69,940
Mumbai	64,000	69,820
Ahmedabad	64,050	69,850
Chennai	65,150	69,980
Kolkata	64,000	69,820
Gurugram	64,150	69,950
Lucknow	64,150	69,950
Bengaluru	64,000	69,820
Jaipur	64,150	69,950
Patna	64,050	69,850
Bhubaneshwar	64,000	69,820
Hyderabad	64,000	69,820

India’s reliance on imported gold heavily influences domestic prices, which closely mirror global trends. The cultural significance of gold, particularly during festivals and weddings, further impacts demand levels.

Gold Prices May Rise by Rs 18,000: Bullion Experts Suggest Buy-Sell Strategy (newsd.in)

Expert Insights on Gold and Silver Prices

Rahul Kalantri, vice-president (commodities) at Mehta Equities Ltd, commented on the current market situation. “Gold prices slipped to 3-week lows and silver prices to 11-week lows despite falling US yields. Precious metals have extended their fall after strong US economic data increased worries that the US Fed might cut rates in September. Gold and silver showed heavy sell-off after the Chinese central bank surprisingly cut its one-year lending rate by 20 basis points to 2.30%,” Kalantri said.

Kalantri added that the Chinese economy is under significant pressure and its central bank has stopped buying gold for its reserves over the last three months. This has impacted precious metals in international markets.

Market Analysis and Projections

Kalantri provided support and resistance levels for gold and silver:

• Gold: Support at $2358-2340, resistance at $2400-2418. In INR, support at Rs 67,220-66,900, resistance at Rs 67,790-68,100.
• Silver: Support at $27.78-27.55, resistance at $28.25-28.48. In INR, support at Rs 80,850-80,180, resistance at Rs 82,420-83,200.

Impact of Customs Duty Reduction

The significant duty cuts on precious metals aim to reduce smuggling but are expected to cost the government an annual revenue loss of over Rs 28,000 crore based on 2023-24 import levels. In FY24, India imported gold worth USD 45.54 billion and silver worth USD 5.44 billion while exporting jewelry worth USD 13.23 billion.

The reduction in import duties is expected to lower prices, benefiting long-term investors. The Union Budget 2024-25 has made gold investments more attractive by lowering capital gains tax and import duties.

Conclusion

With the recent price drop and favorable budget changes, gold buyers should:

• Increase Allocation: Utilize the current price dip to buy gold in lump sums.
• Strategize Selling: Aim to sell around Rs 72,000, considering the long-term positive outlook driven by expected interest rate cuts.
• Leverage Tax Benefits: Capitalize on the reduced capital gains tax and import duty cuts to enhance long-term returns on gold investments.

Investors and traders are closely monitoring these dynamics amid ongoing market fluctuations. Stay tuned for further updates on this evolving story.