New Delhi

Gold and Silver futures surged sharply on Wednesday after the Centre raised import duties on bullion to 15 per cent, a move aimed at containing imports amid mounting external sector pressures linked to the ongoing West Asia conflict.

On the Multi Commodity Exchange of India (MCX), gold contracts for June delivery jumped by Rs 9,723, or 6.34 per cent, to Rs 1,63,165 per 10 grams.

Silver also posted strong gains, with the most active July contract climbing Rs 19,439, or 6.97 per cent, to Rs 2,98,501 per kilogram, inching closer to the Rs 3 lakh mark.

Market participants attributed the sharp rise in domestic bullion prices to the government’s decision to increase import duties on precious metals from 6 per cent to 15 per cent, effective May 13.

The revised duty structure, announced through a notification by the Finance Ministry, includes higher social welfare surcharge and agriculture infrastructure and development cess, taking the total customs duty on gold and silver imports to 15 per cent.

Analysts said the measure is expected to temper bullion imports in the short term as policymakers seek to ease pressure on India’s current account deficit amid elevated crude oil prices and geopolitical uncertainty in West Asia.

The decision comes days after Prime Minister Narendra Modi appealed for restraint in gold purchases as part of broader measures to conserve foreign exchange.

While domestic markets reacted sharply, international bullion prices rose at a comparatively moderate pace.

On the COMEX, gold futures for June delivery gained USD 21.40, or 0.46 per cent, to USD 4,708.10 per ounce, while silver advanced 2.12 per cent to USD 87.40 per ounce.

According to trade data, India’s gold imports rose over 24 per cent to a record USD 71.98 billion in 2025–26, though import volumes declined 4.76 per cent to 721.03 tonnes.

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Traders said the sharp divergence between domestic and global bullion prices reflects the immediate impact of the higher import duty on India’s precious metals market.