13 May,2026 03:14 PM IST | Mumbai | mid-day online correspondent
Import duty hike sparks record surge in gold and silver futures. Representational Image
Gold and silver saw a strong rally in domestic markets on Wednesday after the government announced a steep increase in import duties. The precious metals prices surged by up to 8 per cent in early trade, reacting sharply to the policy change.
On the Multi Commodity Exchange (MCX), gold futures for June 5 delivery rose as much as 7.20 per cent or Rs 11,055 to touch an intraday high of Rs 1,64,497 per 10 grams. Around 9:50 am, gold was trading at Rs 1,62,728, up 6 per cent or Rs 9,286 from the previous close, reported IANS.
The metal had opened the session at Rs 1,54,851, which also marked its intra-day low, before climbing sharply.
Silver also saw a strong upward move. July 3 silver futures jumped as much as 8 per cent or Rs 22,367 to hit an intra-day high of Rs 3,01,429 per kg. It later traded at Rs 2,97,655, up 6.66 per cent or Rs 18,593 from the previous close. The session began at Rs 2,90,224, reflecting strong buying interest right from opening.
The rally was triggered by the government's decision to significantly increase customs duties on precious metals. The import duty, including cess, on gold and silver has been raised from 6 per cent to 15 per cent, while platinum duty has been increased from 6.4 per cent to 15.4 per cent, as per the news agency.
According to government sources, the move is part of a broader economic strategy. A source noted that the aim is to "reduce dependence on imports and support foreign exchange stability." Officials also said the step is intended to conserve foreign exchange reserves, manage the current account deficit, and prioritise essential imports amid global economic uncertainty.
In international markets, precious metals also showed gains. COMEX gold rose 0.52 per cent to USD 4,710 per ounce, while COMEX silver advanced 2.28 per cent to USD 87.54 per ounce, as reported by the news agency.
Analysts believe the sharp rise in domestic prices reflects immediate policy impact, though volatility may continue as traders adjust to the higher import costs. With global uncertainty persisting, precious metals are expected to remain sensitive to both international cues and domestic policy changes.
(With IANS Inputs)
