`5,000 Drop: Gold Prices Nosedive After Duty Slash

New Delhi, July 26: Gold prices in local markets have seen a sharp correction of 7% or `5,000 per 10 grams following the government's decision to reduce the basic custom duty on gold. This price drop is expected to boost investment in gold as both a commodity and a financial asset.

The correction began on July 23, when gold prices fell by `3,350 to `72,300 per 10 grams in the national capital. The downward trend continued over the next two days, with prices dropping by ₹650 on Wednesday and another `1,000 on Thursday, settling at `70,650 per 10 grams.

In total, gold prices have declined by `5,000 per 10 grams or 7.1% over three sessions since the duty cut announcement. Gold of 99.5% purity also saw a similar decline, dropping by `5,000 per 10 grams to `70,300.