Precious metal prices fell to nearly a two-week low as investors praised the US economy’s resiliency and reduced demand for conventional safe-haven assets, putting severe downward pressure on bullion prices and dragging them to their lowest level.
What are Budget announcements for Bullion industry?
There are 2 major announcements in this budget for the bullion industry, which is considered positive by the market participants –
1) Reduction in Duty on Gold and Silver from 15% to 6%.
2) Changes in the capital gain tax rate in holding and selling gold in physical or digital form.
Bullion prices correct amid risk-off sentiment
Gold and Silver prices have fallen sharply to around $2375 (~ Rs 68000) and $28 (~Rs 81500). The downfall may be due to technical selling and risk-off sentiment.
Duty cuts lead to a sharp fall in domestic Gold and Silver prices
9% Duty in Gold and Silver led to a sharp fall of 5-6% in domestic gold and silver prices yesterday. Prices are expected to consolidate a bit before moving in either direction.
AUGMONT POST BUDGET REPORT
There are two major announcements in this budget for the bullion industry, which is considered positive by the market participants.
1) Reduction in Duty on Gold and Silver from 15% to 6%
2) Changes in the capital gain tax rate in holding and selling gold in physical or digital form.
Precious Metals continue to skid
Precious metals continue to skid amid weak USD demand. Against the background of dovish Federal Reserve predictions, US President Joe Biden’s withdrawal from the presidential campaign pushes some investors to unwind investments based on a Trump victory.
Top Five Expectations from Budget from the Bullion Industry
Jewellers, Jewellery Associations, Bullion Traders, Bullion Refiners, etc, and most of the Bullion market participants have a lot of expectations from the Budget every year for the development of the Bullion Industry. This article explains the top five expectations from this budget.
Did Gold give a false breakout to record highs?
Gold gained 3% in the first half of the week to a record high of $2488 (Rs 74730) and then fell by 4% in the second half to close around $2400 (Rs 73000), creating a bearish “Inverted Hammer” candlestick pattern on weekly charts.
Precious Metals retreat from record highs
After reaching an all-time high of $2488 (74730), gold prices fell as speculators booked profits and investors were unable to hold onto their gains.
Gold at new highs again
Despite better-than-expected core retail sales figures, gold prices reached a fresh record high of $2488 (Rs 74730). Powell’s statement yesterday suggested that the Fed was becoming increasingly confident that inflation was returning to goal is supporting the gold rally.