India slashes tax as gold prices sink

On Saturday, India slashed the import tariff value on gold by more than Rs 6,000 (Dh370) per kg following a global meltdown in the price of gold over the past two trading days.

The Indian government on Saturday slashed import tariff value on gold to $391 per 10gm and silver to $551 per kg following weak global price trends. During the last fortnight, the tariff value on imported gold was fixed at $401 per 10gm and on silver at $575 per kg.

Gold price tanked to its lowest level since 2010 as the scheduled end of the US Federal Reserve’s asset-purchase program kicked in on Halloween night, October 31.

The gold price seemingly fell off a cliff on Friday, the last trading day of October and the last day before the end of what is popularly known as the third tranche of the US’ quantitative easing programme (QE3), breaking a couple of key support levels and sinking to as low as $1,161.37 per ounce in intra-day trade.

Gold finally settled at $1,172.49/oz on Friday, a closing level that the yellow metal hasn’t seen since July 2010. Battered by US dollar strength, Comex December gold was down about $67/oz for the week.

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