Gold and Silver rate today (July 23, 2024): Precious metal trade under pressure after FM announces reduction in customs duty on gold and silver

Gold and Silver rate today (July 23, 2024): Domestic precious metal futures on Tuesday traded under pressure after Indian Finance Minister Nirmala Sitharaman announced to reduced custom duty on gold. 

At the last count, MCX gold futures (Aug 5) were down 5.46 per cent or Rs 3,967 at Rs 68,751 per 10 gm. Meanwhile, MCX Silver futures (Sept 5) were down 5.48 per cent or Rs 4,890 at Rs 84,313 per kg.

"In the Budget, the Finance Minister announced a reduction on Basic Custom Duty on gold and silver from 10 per cent to 6 per cent. Adding 5 pe rcent AIDC, which remains unchanged, the total import duty on gold and silver is reduced from 15 per cent to 11 per cent now. As a result, the price of gold reacted lower in MCX as the market prices in the lower import duty gap of 4 per cent. The broad view remains volatile," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

Neha Qureshi, Senior Technical and derivative Research Analyst, Anand Rathi Commodities & Currencies recommended selling gold August futures on rise at 72,700, keeping the stop loss at Rs 73,300 and a target price of Rs 72,000. For silver September futures she recommended selling on rise at Rs 89,000, with a stop loss of Rs 90,000 and a target of Rs 87,000.

Meanwhile, COMEX gold in the international market was flat with positive at $2,395.78 per ounce. 

"Investors are also anticipating Friday’s U.S. personal consumption expenditures data for further clues on the timing of interest rate cuts," said Anand James, Chief Market Strategist, Geojit Financial Services. 

Trigger that are affecting yellow metal movements: 

>> Release of the preliminary reading of Gross Domestic Product (GDP) figures for the second quarter alongside the Federal Reserve’s preferred gauge for inflation, the Core Personal Consumption Expenditure (PCE) Price Index.

>>Gold traders eye the release of crucial economic data, like Durable Goods Orders, the release of the preliminary Q2 GDP number, and the Core PCE for June.

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