Gold and silver prices today witnessed a sharp surge of around six per cent after the government more than doubled the import duty. In the spot market, 24 Carat Gold was trading 5.9 per cent higher at 1 lakh 63 thousand 220 rupees per 10 grams, while Silver was trading 6.7 per cent higher at 2 lakh 98 thousand 370 rupees per kilogram, a short while ago.
In the futures market at the Multi Commodity Exchange, gold for the June contract was trading nearly six per cent higher at 1,62,573 rupees per 10 grams, while silver for the July contract was trading 6.7 per cent higher at 2,97,908 rupees per kilogram, when reports last came in. However, during intraday trade, gold and silver prices touched gains of up to eight per cent.
The government has raised the import duty, including cess, on gold and silver from 6 per cent to 15 per cent. The import duty on platinum has also been increased from 6.4 per cent to 15.4 per cent. Through this move, the government aims to reduce the current account deficit and conserve foreign exchange reserves amid ongoing global uncertainty.
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