Govt reduces tariff value of gold and silver
The government has reduced the import tariff value on gold to $421 per 10 gm from $445 per 10 gm earlier. Also, the import tariff value ? the base price at which customs duty is determined to prevent under-invoicing ? in the case of silver has been reduced to $644 per kg from $694 per kg earlier, a notification by the Central Board of Excise and Customs said. The tariff value is revised on a fortnightly basis after analysing the global price trend.
Ace launches futures trading in gold hedge
Ace Derivatives and Commodity Exchange (Ace), a Kotak Mahindra Group anchored commodity exchange in India, announced it has commenced trading in gold hedge futures contract effective from Tuesday. Ace has launched three contracts ? expiring in May, July and September 2014. The trading unit for the contract is 1 kg and the tick size is R1, ACE said. Gold hedge is an intention matching contract, and the contract basis centre is ex-Ahmedabad. The price is inclusive of taxes and levies excluding sales tax/ VAT. The USP of the contract is that the price quotation is inclusive of import custom duty and hence it provides a real opportunity for all market participants to hedge their price exposure.