MCX Gold Sizzles As India Hikes Import Tariff
Mumbai-India (Feb 17) MCX gold futures jumped near the psychological Rs 30000 per 10 grams getting additional boost following the hike in gold’s import tariff value by Indian government on Friday.
The government on Friday raised the import tariff value on gold and silver to $421 per 10 grams and $663 per kg, respectively, taking into account the volatility in the global prices
Import tariff value is the base price at which customs duty is determined to prevent under-invoicing. The tariff value is revised on a fortnightly basis after analysing the global price trend.
Till Thursday, the tariff value on imported gold was at $404 per 10 grams, while on silver it stood at $635 per kg. Before the current hike in the Silver import duty, the government had cut the value for silver by a whopping 14% in last three months.
MCX April gold futures jumped to as high as Rs 29980 per 10 grams so far in the session today. It recorded a jump of nearly Rs 600 or 2% in today’s session. The weakness in Indian Rupee also added to gains in the yellow metal.
The rupee resumed lower at 61.96 per dollar as against the last weekend's level of 61.93 per dollar and dropped further to 62.09 per dollar before quoting at 62.05 per dollar at 1045 hrs.
International gold futures for April delivery are trading up $7 at $ 1325.6 an ounce in the electronic hours today. The extended weakness in the US Dollar helped the bullion trespass the $1300 an ounce mark. The Comex floor trading will be closed on Monday for the Presidents Day holiday in the U.S.
The ICE dollar index, which tracks the U.S. unit against six other currencies, eased to 80.03 from 80.13 late Friday. Last week, the index lost roughly 0.6%.
The dollar has been losing sheen as investors digested mixed U.S. economic data released recently, including a 0.3% drop in industrial production, unchanged consumer sentiment in February, and an unexpected fall of 0.4% in retail sales in January, which has sparked some concerns that the U.S. economic recovery is losing steam.
(Source: Indian Infoline)
