Gold and silver prices experienced a significant surge, rising by up to 8% following the government’s decision to more than double the import duty on these precious metals. On the Multi Commodity Exchange (MCX), gold futures for June 5 saw an increase of 7.20%, reaching an intraday high of Rs 1,64,497 per 10 grams by 9:50 am. The price of gold stood at Rs 1,62,728, marking a 6% rise from the previous close.
In parallel, silver futures for July 3 also witnessed robust gains, jumping by 8% or Rs 22,367 to hit an intraday high of Rs 3,01,429 per kg. The white metal was trading at Rs 2,97,655, showing a 6.66% increase from the previous close. The government’s decision to raise customs duties on imports triggered this rally in precious metals.
The recent move by the government involved a significant increase in import duties on gold, silver, and platinum, elevating them from 6% to 15%. Platinum import duty also rose from 6.4% to 15.4%. This step aims to address the current account deficit, preserve foreign exchange reserves, and navigate through global uncertainties. The hike in import duties on precious metals is part of a broader strategy to safeguard the current account, prioritize essential imports, and bolster India’s economic resilience amidst global challenges.
In the international market, COMEX gold saw a 0.52% increase to $4,710 per ounce, while COMEX silver rose by 2.28% to trade at $87.54 per ounce.
