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Gold, Silver Prices Surge Up to 8% After Import Duty Hike to 15%

Gold and silver prices surged up to 8% on Wednesday after the government doubled import duty on precious metals from 6% to 15%. On MCX, gold futures hit an intraday high of Rs 1,64,497 per 10 grams, while silver futures touched Rs 3,01,429 per kg. The government aims to reduce the current account deficit and conserve foreign exchange reserves amid global uncertainty. In international markets, COMEX gold rose 0.52% to $4,710 per ounce.

Key Points: Gold, Silver Prices Surge 8% on Import Duty Hike

  • Gold futures surge 7.2% to Rs 1,64,497 per 10 grams
  • Silver futures jump 8% to Rs 3,01,429 per kg
  • Import duty on gold & silver raised from 6% to 15%
  • Move aims to reduce current account deficit
2 min read

Gold, silver prices surge up to 8 pc after import duty hike

Gold and silver prices jumped up to 8% on MCX after India doubled import duty to 15%. Government aims to reduce current account deficit.

"Through this move, the government aims to reduce the current account deficit and conserve foreign exchange reserves amid ongoing global uncertainty. - Government sources"

Mumbai, May 13

Gold and silver prices on Wednesday witnessed a sharp surge of up to 8 per cent after the government more than doubled the import duty on precious metals.

On the Multi Commodity Exchange (MCX), gold futures (June 5) advanced as much as 7.20 per cent or Rs 11,055 to touch an intraday high of Rs 1,64,497 per 10 grams as of 9:50 am.

The yellow metal was trading at Rs 1,62,728, up 6 per cent or Rs 9,286 from the previous close. Earlier in the session, it had opened at Rs 1,54,851, rising 0.91 per cent or Rs 1,409, which also remained the intraday low so far.

Meanwhile, silver futures (July 3) also recorded strong gains during the session, jumping as much as 8 per cent 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, up 6.66 per cent or Rs 18,593 from the previous close. It had opened at Rs 2,90,224, rising 4 per cent or Rs 11,162 over the previous settlement price.

The rally in precious metals came after the Centre's decision to increase customs duties on imports.

The government has raised the import duty, including cess, on gold and silver from 6 per cent to 15 per cent.

Meanwhile, import duty on platinum has 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.

According to government sources, the increase in import duty on precious metals is part of a broader strategy aimed at conserving foreign exchange, safeguarding the current account, prioritising essential imports, and strengthening India's economic resilience amid global uncertainties.

In the international market, COMEX gold rose 0.52 per cent to $4,710 per ounce, while COMEX silver gained 2.28 per cent to trade at $87.54 per ounce.

- IANS

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Reader Comments

D
Divya L
Finally some tough measures to control gold imports! Our CAD has been bleeding for years and gold is a major contributor. As an investor, I see this as a short-term pain for long-term gain. India needs to prioritise essential imports and strengthen the rupee. This is a bold step by the government. 👏
R
Rahul R
This is pure speculation benefiting traders. Gold prices are already sky high and now this duty hike will make it worse. Meanwhile, people who invested in gold ETFs and savings schemes will see some benefit, but for the average buyer, this is a nightmare. Hope the government reviews this once CAD stabilizes.
P
Pooja D
My mother was planning to buy gold for my wedding this year. Now this hike has thrown all plans into disarray. We might have to reduce the quantity or look for lighter designs. It's disheartening to see essential cultural purchases becoming so expensive. 😓
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Tanya I
This move is strategically sound given the global uncertainty and oil price volatility. India's forex reserves need protection and gold imports are a major drain. However, the government should simultaneously crack down on gold smuggling which will increase with this duty hike. Overall, a necessary evil.
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Siddhartha F
As someone who tracks gold prices regularly, this was expected after the government's signals on CAD. But the magnitude of the hike is surprising. 6% to 15% is huge. Silver also hit Rs 3 lakh per kg. Time to sell old jewelry at these high prices if you have extra pieces lying around. 😅

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