Import duty slash in gold and silver dented the yellow metal on Monday with the price falling Rs 1,324 to Rs 47,520 per 10 gram, according to HDFC Securities.

Silver, however, jumped to Rs 72,470 per kilogram from Rs 69,009 per kilogram in the previous trade. In the international market, gold was trading in the green at $1,871 per ounce and silver also quoted with gains at $29.88 per ounce.

The Union Budget 2021-22 announced a cut in import duty on gold and silver with the objective to bring down prices of these precious metals in the domestic market and boost exports of gems and jewellery.

“Gold and silver presently attract a basic customs duty of 12.5 per cent. Since the duty was raised from 10 per cent in July 2019, prices of precious metals have risen sharply. To bring it closer to previous levels, we are rationalising customs duty on gold and silver,” Finance Minister Nirmala Sitahraman said in her Budget speech. The customs duty on gold and silver has been reduced to 7.5 per cent.

“The cut in import duty has hammered gold lower. This step has been implemented amid recent rise in prices, smuggling and other factors,” said Navneet Damani, VP – Commodities Research at Motilal Oswal Financial Services.