The government on Friday withdrew incentives being provided to exporters of gold medallions and coins for raw material import. “Advance Authorisation shall not be issued where items of export are gold medallions and coins or any jewellery/articles manufactured by fully mechanised process,” the Directorate General of Foreign Trade (DGFT) said in a notice. An Advance Authorisation is issued to allow duty free import of inputs, which are physically incorporated in export products.
The price of gold in Delhi fell by Rs 121 to Rs 38,564 per 10 gram today tracking robust rupee and muted global cues, experts said. The silver also fell Rs 851 to Rs 46,384 per kilogram as against Rs 47,235 per kilogram in the previous trade. The 24 Karat gold closed at Rs 38,685 per 10 gram. The gold globally was ruling lower at $1,497.17 per ounce in New York and silver prices were also trading down at $17.54 an ounce.
The gold prices are on the rise despite the equities picking up of late. “The global uncertainty over US-China trade war, tension in the Middle East and weak rupee is pushing investors towards the bullion counters.” Ajay Kedia, MD, Kedia Commodities told Financial Express Online earlier this week. Meanwhile, after FM Nirmala Sitharaman announced a mega corporate tax cut last Friday, the headline indices Sensex and Nifty registered their best week in about 4 months with weekly gains of about 2 per cent. The Sensex gained more than 808 points in the week to close at 38,822, while the Nifty amassed 238 points in the week to close at 11,512. Last Friday, the Sensex and Nifty registered their biggest one-day gain in over a decade after FM Nirmala Sitharaman announced a slew of big-bang reforms to revive the ailing economy.