Author: Paul Ploumis02 Jun 2015 Last updated at 07:26:01 GMT

MUMBAI (Scrap Monster): The Indian Government today announced cut in import tariff value for gold and silver. The import tariff value of gold was slashed by nearly 3.27% and that of silver by over 4%, in accordance with prices of precious metals in the international market.

The Central Board of Excise and Customs (CBEC) issued notification in this regard reducing the gold import tariff value to $385 per 10 grams. The import tariffs are being slashed from the existing $398 per 10 grams. Meanwhile the import tariff value of Silver has been lowered from the existing $567 per kilogram to $544 per kilogram.

The government move to lower the import tariff value is in track with the weakening gold prices in the global and domestic markets.

Meanwhile, gold prices edged lower on Monday, on the back of rising dollar strength and higher US interest rate hopes. The prices slipped below $1,200 level. Spot gold prices declined 0.3% to $1,186.79 an ounce. US gold futures for August delivery were down nearly $3.00 at $1,186.70 an ounce. Silver hit the lowest levels since May 13th at $16.51 an ounce on Wednesday. According to traders, physical gold demand from Asian countries, especially China and India, is the lone factor that may take gold and silver prices to higher levels.

The gold in India edged higher by Rs 45 to Rs 27,270 per 10 grams on scattered buying by jewellers. Silver too witnessed significant gains on increased industrial demand. The prices jumped higher by Rs 200 to Rs 38,600 per kg.

Tariff value is the base price on which the customs duty on imported gold or silver is calculated and it further helps prevent under-invoicing.