The precious metals market today suddenly saw a rise in prices of gold and silver. What is it that aroused the interest of investors and buyers alike as the cause for this rise? The first market experts seem to point towards a major modification under the Goods and Services Tax (GST) policies as perhaps being a key player.

Silver, Gold Rate Today

Today, gold considered a safe-haven asset, moved up in prices in all major cities in India. Retail demand and global cues have supported its value. Market analysts have pointed out that traders are also adjusting pricing based on the GST changes, which may affect the overall pricing of buying and selling gold jewelry.

Sudden Rise for Silver, Too

Along with gold, silver also saw an increase in rates. The demand for silver is often linked not just to jewelry but to industrial usage as well, and thus silver prices tend to be more sensitive to taxes and changes in import duties. The new GST changes might have increased effective costs for buyers, therefore leading to the higher rates quoted today in the market.

GST Obstruction: Possible Trigger

The recent alteration by the government regarding the GST slab on certain categories of goods and services works indirectly against bullion traders. While inward GST on gold and silver is at a fixed rate, the ancillary costs regarding the making of jewelry and imports have been revised. This revision is being interpreted as a catalyst behind the sudden surge in the prices of bullion.

Also Read: 10 Golden Money Rules for Long-Term Financial Security

Impact on Buyers and Investors

Increased making charges and retail prices may impact jewelry buyers initially. Investors, on the other hand, treat this as a short-term reaction. If GST changes stabilize the market in the long term, gold and silver can regain their previous steady price levels. Meanwhile, the volatility may continue.

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