Commodity Online
NEW DELHI : Gold prices in India surged in the last session Monday, influenced by budgetary decision to impose import duty on gold bars, despite weak global trends.

Spot gold prices advanced by Rs 100 to close at Rs 14,750 per ten gram in the bullion market despite a steep fall in gold prices in other Asian markets, which normally set price trend in domestic markets.

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The most active August gold contract was seen trading at Rs 14,521 per ten grams at 6.11 p.m Indian time while October contract was at Rs 14,523 per ten grams at the same time.

Import duty on gold bars raised from Rs 100 per 10 gram to Rs 200 per 10 gram, while other forms of gold excluding jewellery is increased from Rs 250 per 10 gram to Rs 500 per 10 gram.

The customs duty on silver has also been increased from Rs 500 per kg to Rs 1,000 per kg. The duty on gold and silver has not been reviewed since 2004.

A similar firmness was noticed in silver as the metal in spot trading gained Rs 50 at Rs 21,800 per kg and weekly-based delivery by Rs 80 at Rs 21,680 per kg.

Silver coins rose by Rs 100 at Rs 28,900 for buying and Rs 29,000 for selling of 100 pieces.

Standard gold and ornaments rose by Rs 100 each at Rs 14,750 and Rs 14,600 per ten gram respectively. Sovereign held unchanged at Rs 12,300 per piece of eight gram in limited deals.

Meanwhile, bullion prices slipped in Europe on Monday, pressured by gains in the dollar as investors bought the currency as a safe store of value amid fears over the outlook for the global economy.

A slide in oil and other commodity prices was also keeping bullion under pressure, analysts said.

Spot gold was bid at $921.10 an ounce at 6.11 p.m Indian time as against $932.30 an ounce late in New York on Friday.

U.S. gold futures for August delivery on the COMEX division of the New York Mercantile Exchange fell $9.70 from Thursday's close to $921.30 an ounce.