The government on Tuesday slashed the tariff value of gold and silver to USD 499 per 10 grams and USD 890 per kg, respectively, taking into account weak global prices of the precious metals.

Tariff value is the base price on which the customs duty is determined to prevent underinvoicing.

During the first fortnight of April 2013, the tariff value of gold stood at USD 521 per ten grams and silver at USD 920 per kg.

According to the notification issued by the Central Board of Excise and Customs (CBEC), the tariff value of gold and silver has been reduced, while tariff value of RBD palmolein has been raised marginally.

The tariff value of RBD palmolein has been increased to USD 867 per tonne now from the earlier USD 863 per tonne.

The government reduced import tariff value of precious metals following weak price trend in the global market, where gold plunged 9.35 per cent to USD 1,360.60 an ounce at the New York exchange.

The metal has dropped by USD 200 an ounce, or nearly 13 per cent, in the last two trading days.

Tracking weak global cues, gold prices fell in the national capital by Rs 1,160 per ten grams to 21-month low at Rs 26,440.