- Gold prices on MCX fell 0.82% to Rs 1,60,133 per 10 grams on May 15
- Silver futures on MCX declined 3.28% to Rs 2,81,551 per kg on the same day
- Global gold prices dropped 0.8% amid high US inflation and rate hike expectations
Gold Price Today: The yellow metal rate dipped on MCX today, May 15 amid the government's push to curb gold imports due to the ongoing tensions in the Middle East.
At 9:03 am on Friday, the MCX gold June futures contract fell 0.82% or Rs 1,320 to Rs 1,60,133 per 10 grams, while the MCX silver July futures dropped 3.28% or Rs 9,551 to Rs 2,81,551 per kg.
Globally as well, gold continued to decline as high US inflation data, primarily driven war-driven surge in US inflation fueled expectations for higher interest rates. The precious metal traded 0.8% lower at $4,615 an ounce, and is down around 2% since last Friday.
Following a significant duty hike on precious metals, the government on Thursday imposed a limit of 100 kg on gold imports under the Advance Authorisation scheme, which allows jewellery exporters to import raw or input materials at zero duty.
Prior to this, there was no limit on gold imports under the scheme.
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The Advance Authorisation scheme permits duty-free import of inputs that are used into an export product. In addition to inputs, packaging material, fuel, oil, and catalyst that are consumed or utilised in the process of production of export product, are also covered.
In a notification issued on Tuesday, May 12, the government hiked import duty these precious metals from 6% to 15%. The move, which is expected to make gold, silver and platinum costlier, comes two days after Prime Minister Narendra Modi appealed to the citizens to defer their gold purchases, as the country's foreign exchange reserves have come under strain due to the Middle East conflict.
Addressing a public gathering in Hyderabad on Sunday, PM Modi urged people to postpone gold purchases for a year, to help support the country's forex. "I would appeal to people not to buy gold for weddings for one year," he said, adding, "In the current situation, we must place great emphasis on saving foreign exchange."
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