Mumbai: Following the Reserve Bank easing the 20:80 gold import norms, India Bullion & Jewellers Association (IBJA) said gold prices are likely to fall to Rs 23,000-24,000 per 10 grams by Diwali as it also expects the Customs duty reduction in the forthcoming Budget, reports The Freepress Journal.

“RBI’s easing of 20:80 gold import norms is positive for the gems and jewellery industry. We expect this will be followed by reduction of the Customs duty to 4-5 per cent from the current 10 per cent in the forthcoming Budget, resulting in declining of gold prices and (price) is likely to be at Rs 23,000-24,000 by Diwali,” IBJA President Mohit Khamboj said. The yellow metal is likely to be on par with the global prices as the premiums will also go down due to the positive steps taken by the government, he said. “It will also reduce the gold inflow through grey market,” he said.

In Delhi, gold prices plunged by Rs 800 to Rs 28,550 per 10 gram, the lowest level since August last year. In Mumbai, the price fell below the 28,000 mark dropping by Rs 780 to Rs 27,840 per 10 gram.

Gold import by India may increase by 10-15 tonnes per month following the latest relaxations by RBI, and emergence of stronger government.

Jewellers said the rupee has improved after the poll results, which showed a stable government in the next term, and that has also led to overall swung in the market sentiment.

All India Gems and Jewellery Federation (GJF) Director Bacchraj Bamalwa said, “It seems gold import may increase in coming months by 10-15 tonnes per month as the mood in market is positive as new and stable government has emerged after the results and the latest relaxations by RBI.”