Gold, silver prices jump after Centre hikes import tariffs
· Scroll
The prices of gold and silver in India jumped sharply on Wednesday after the Union government increased import duties on the precious metals, making them more expensive in the domestic market.
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Gold futures on the Multi Commodity Exchange had risen by nearly 6% to Rs 1.62 lakh per 10 grams as of 10.55 am. Silver futures had jumped by more than 6% to Rs 2.96 lakh per kg.
The sharp increase came after the government on Tuesday increased import duties on gold and silver to 15% from 6%.
The decision aims to reduce imports of the precious metals in India, the world’s second-largest consumer of gold and silver, and ease pressure on the country’s dwindling foreign exchange reserves. It may also help reduce the country’s trade deficit and support the weakening Indian rupee.
The value of the Indian currency had improved marginally as of 11 am on Wednesday, trading at 95.5 against the United States dollar. It had reached a record low of 95.6 per dollar on Tuesday amid elevated global oil prices and economic headwinds caused by the conflict in West Asia.
Concerns have been mounting about the economic impact of the war amid an elusive peace deal between the United States and Iran.
The price of benchmark Brent crude was 106 per barrel...