Gold price today fell to Rs 47,960 per 10 gm from Rs 48,800. Silver price soared to Rs 69,800 per kg according to the Good Returns website.
Gold jewellery price varies across India, the second-largest consumer of the metal, due to excise duty, state taxes, and making changes.
In New Delhi, the price of 22-carat gold stayed at Rs 47,800 per 10 gm, while in Chennai it was at Rs 46,560. In Mumbai, the rate was at Rs 47,960. The price of 24-carat gold in Chennai was at Rs 50,780 per 10 gm.
The gem and jewellery industry has sought a reduction in customs duty on gold to four per cent, withdrawal of tax collected at source (TCS), cut in import duty on polished precious and semi-precious gemstones, in the upcoming Union Budget 2021-22.
All India Gem and Jewellery Domestic Council (GJC) Chairman Ashish Pethe told PTI, "We urge the government to reduce the customs duty to 4 per cent from the current 12.5 per cent. If the tax rate is not kept at this level, it will encourage smuggling and encourage people to do unorganised business."
He further urged the government to keep goods falling under HSN-71 (Harmonised System Nomenclature) out of the purview of TCS provisions as the amount of funds blocked in TCS is 6.67 times more than the ability to pay income tax, resulting in blockage of funds.
Meanwhile, in the international market, Silver rose more than 4 per cent on Friday following a near 5 per cent gain on Thursday that came after messages on Reddit urged retail investors to pile into the market in an attempt to push prices higher.
Precious metals were also helped by a retreat in equities as hedge funds and retail investors continue to battle over valuations and European countries fight over COVID-19 vaccine supply, with gold up more than 1%.
Silver surged as much as 7% on Thursday after calls circulated on Reddit for people to buy silver mining stocks and iShares Silver Trust, an exchange-traded fund (ETF) backed by physical metal, in a GameStop-style squeeze.