Thursday 10 July 2014

Indian gold futures rise over 2 per cent post budget with import duty unchanged

The Budget came as a disappointment for gold lovers, who had widely anticipated a cut in the import duty of 10%. The domestic gold market, which priced in a cut of 2% in duty rate, witnessed a sharp jump of 1.66% in the futures rate to Rs 28,070 per 10 gm. 

On the flip side, jewellers like Vijay Jain or Orra believe that people who had held back from purchases expecting a duty cut would now come back to the market. However, Sandeep Kulhalli, vice president retail and marketing, Tansihq, one of the country's most well-known brand, said demand in July and August typically tended to be lacklustre and one would have to wait and see how prices and demand picked up thereafter. 

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