Gold and Silver Trade at Abnormal Premiums on MCX and ETFs Amid Budget Duty Hike Speculation
Gold and silver are trading at abnormally high premiums over international benchmarks in India due to speculation about potential customs duty hikes in the February 1 Union Budget. Silver premiums exceed ₹30,000 per kg while gold premiums reach 3-4%, causing MCX gold futures to rise 5% to ₹1,57,750 and silver futures to jump 3% to ₹3,33,672. ETFs show even sharper gains with some rising nearly 10%. The premium surge is disrupting arbitrage trades and causing losses for international traders, while market speculation focuses on whether the government might reverse its July 2024 duty cut from 15% to 6%.
Gold and silver are trading at abnormally high premiums over international benchmarks in India due to speculation about potential customs duty hikes in the February 1 Union Budget. Silver premiums exceed ₹30,000 per kg while gold premiums reach 3-4%, causing MCX gold futures to rise 5% to ₹1,57,750 and silver futures to jump 3% to ₹3,33,672. ETFs show even sharper gains with some rising nearly 10%. The premium surge is disrupting arbitrage trades and causing losses for international traders, while market speculation focuses on whether the government might reverse its July 2024 duty cut from 15% to 6%.
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