Gold and silver declined sharply in Indian markets

Gold prices declined sharply in the Indian market for the second straight session. On Multi Commodity Exchange, the yellow metal futures dropped 0.6% and settled at Rs 48,438 per 10 gram. Meanwhile, silver futures dipped 2.2% and touched Rs 72,009 per kg after the recent rise.

Significantly, in the previous session, the yellow metal’s price had increased by 1.2%, which equals Rs 627 per 10 gram. In comparison, silver had boosted by 6% or Rs 4,238 per kg. In Budget 2021, the Indian government has cut import duties on the yellow and white metals.

The government of India cut import duties on gold and silver from 12.5% to 7.5%. However, it introduced a 2.5% Agriculture Infrastructure Development cess on the imports. After the news, the yellow metal imports would effectively attract 10.75% tax against 12.5% earlier. Furthermore, the government also declined import duty on gold and silver dore, non-refined gold or silver.

Gold and silver settled on a mixed note in the domestic markets due to duty reduction on precious metals in the Union Budget 2021. Gold April futures contract touched Rs 48,720 per 10 gram with a loss of more than 1%, and Silver March futures contract hit Rs 73,666 per one kilogram with a gain of over 5%

Spot silver fell by 1.7% and touched $28.48 an ounce

Furthermore, COMEX gold trader slightly changed near $1,865/after, while in the previous session it boosted by 0.7%.

In International markets, the white metal priced declined over 2%. Significantly, investors booked profits following an 11% rally in the last trading session, which drove prices to near an 8-year peak. Moreover, spot silver declined by 1.7% and settled at $28.48 an ounce, while in the previous session, it reached $30.03. In global markets, gold fell by 0.2% to $1,856.86 per ounce.

MCX Gold April has traded with enormous volatility where prices have given sharp correction from Rs 49,700 levels. However, it holds support near Rs 48,500-48,200, while the yellow metal had resistance at Rs 48,800-49,200 levels.