Mumbai, May 13 (Udaipur Kiran) — Gold and silver prices witnessed a sharp rally on Wednesday after the Central Government increased import duty on precious metals overnight.
On the Multi Commodity Exchange (MCX), gold prices surged nearly 6 percent, or Rs 9,231, to open at Rs 1,62,648 per 10 grams. Silver prices also recorded a major jump, rising by Rs 16,675 per kilogram to open at Rs 2,95,805 per kg.
The sharp rise came after the Modi government imposed a 10 percent Basic Customs Duty and a 5 percent Agriculture Infrastructure and Development Cess (AIDC) on gold and silver imports.
With the revised structure, the effective import tax on precious metals has increased from 6 percent to 15 percent.
The Centre aims to reduce foreign purchases of precious metals and ease pressure on India’s foreign exchange reserves through the move.
Recently, Prime Minister Narendra Modi had appealed to citizens to avoid buying gold for one year as part of efforts to reduce unnecessary imports and save foreign exchange reserves.
Market experts believe the higher import duty is likely to further impact domestic bullion prices and jewellery demand in the coming days.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
