Gold prices rule flat after two-day rally on custom duty hike

Gold prices were flat on Monday at Rs 35,470 per 10 gram in the bullion market here after rising for two consecutive days post Budget announcement of imposition of higher custom duty.

In the Union Budget for 2019-20, the government proposed to increase custom duty on gold and other precious metals to 12.5 per cent from current 10 per cent.

According to the All India Sarafa Association, gold of 99.9 per cent and 99.5 per cent purity traded flat at Rs 35,470 per 10 gram and Rs 35,300 per 10 gram, respectively, in the national capital.

Sovereign gold held steady at Rs 27,300 per eight gram.

Globally, gold was trading higher at USD 1,403.59 an ounce in New York, while silver was up at USD 15.05 per ounce.

On Saturday, gold had surged by Rs 670 to Rs 34,470 per 10 gram after rising by Rs 590 on Budget day.

Meanwhile, silver ready gained by Rs 148 to Rs 38,948 per kg, while weekly-based delivery zoomed Rs 808 to Rs 38,093 per kg.

On Saturday, silver rose by Rs 300 to Rs 38,800.

Silver coins were in good demand and traded higher by Rs 1,000 at Rs 81,000 for buying and Rs 82,000 for selling of 100 pieces, respectively.