Budget 2025: Gold is going to be expensive after the union budget. Finance Minister Nirmala Sitharaman is going to increase import duty on Gold. She will announce it in the budget on 1 February. This will make gold expensive. In the union budget presented in July last year, the Finance Minister announced to reduce gold and silver duty. This led to a decrease in prices. This had an impact on the import. In August last year, there was a huge jump in Gold’s import.
Import duty was reduced last year
Finance Minister Nirmala Sitharaman (Nirmala sitharaman) Gold on 23 July 2024 (Gold Import duty) And the import duty on silver was reduced from 15 per cent to 6 per cent. Earlier, the import duty of gold was not reduced so much at once. Due to this, for the first time after 2023, the import duty on gold had come down to 10 per cent. Its direct impact was seen on the import of gold. In August 2024, Gold’s import had risen 104 per cent on a year -on -year basis.
Gold prices at record high
Meanwhile, gold prices have again reached a record height. The major reason for this is weakness in dollars. The GDP growth in the US has been less than expected in the fourth quarter. This has affected the dollar. Due to weakness in dollars, gold rose by 1.1 percent to $ 2,790 an ounce in the international market. This is the highest price of gold. Earlier, the price of gold reached a record high in October last year. Weakness in dollars makes it cheaper to buy gold in foreign currency. Therefore, gold climbs when the dollar comes weak. For the first time on 30 January in India, the price of gold crossed 81,000 per 10 grams.
Import duty may increase in budget
If Finance Minister Nirmala Sitharaman increases import duty on gold on 1 February, gold will become expensive. How much gold prices will increase, it depends on how much the government increases the import duty on gold in the budget. However, the Jewelers Industry has requested the government not to increase import duty on gold. He believes that in the last 1-2 years, countries like America and Canada have reduced the export of gold jewelery. Increased import duty will have a bad effect on gold jewelery exports. Also, this can also increase the smugting of gold in the country.
What should you do?
Experts say that the trend in gold prices in short and medium term will continue. The major reason for this is uncertainty in the global economy. There are signs of change in the policy of the US government since Donald Trump became President in the US. Trump has announced to increase import duty on many neighboring countries including Mexico. He has also threatened to increase duty on imports from China. If he enhances duty on imports from China, it can create turmoil in international trade. In such a situation, the glow of gold may increase.
Also read: Budget 2025 Live
Experts say that the portfolio of the investor should have at least 5-10 percent gold. If the gold stake in your portfolio is low then you can invest in gold. Gold may be expensive in the budget. In such a situation, some investment in gold can be made on 31 January today. You can invest the rest after the budget. If the government increases import duty on gold, then the expectation of implementation is low with immediate effect. In such a situation, you can do the rest of the gold purchase even after the budget. This will reduce the average price of your purchase of gold.