Gold & Silver Price Alert: Rates Surge After Import Duty Hike: SRINAGAR: Gold and silver prices jumped sharply in India on Wednesday after the Union government raised import duties on precious metals, pushing up domestic rates.
Gold futures on the Multi Commodity Exchange (MCX) rose by nearly 6 per cent to around Rs 1.62 lakh per 10 grams, while silver futures gained more than 6 per cent to about Rs 2.96 lakh per kilogram.
The rally came a day after the government increased import duties on gold and silver from 6 per cent to 15 per cent. According to a report by The Hindu and BusinessLine, the decision is aimed at reducing imports, easing pressure on foreign exchange reserves, and helping manage the country’s widening trade deficit.
India is one of the largest consumers of gold globally, and changes in import policy often have an immediate impact on domestic prices.
The rupee showed slight recovery on Wednesday, trading at 95.5 against the US dollar around 11 am, after touching a record low of 95.6 on Tuesday, according to market data. The currency has been under pressure due to rising global oil prices and geopolitical uncertainty linked to the ongoing conflict in West Asia.
Brent crude oil remained high at around $106 per barrel on Tuesday, compared to $78 per barrel in late February before tensions escalated.
Indian stock markets were largely flat on Wednesday. The Sensex slipped 0.07 per cent, while the Nifty edged up 0.06 per cent around 11 am.
On Tuesday, markets fell for the fourth straight session, wiping out investor wealth worth over Rs 11 lakh crore, according to Moneycontrol.
Market volatility also increased, with the India VIX index rising 2.1 per cent, signalling cautious investor sentiment.
Across Asia, markets showed mixed movement on Tuesday, with Hong Kong’s Hang Seng rising 0.06 per cent, South Korea’s Kospi up 2.2 per cent, China’s Shanghai Composite gaining 0.3 per cent, and Japan’s Nikkei increasing 0.8 per cent.(KASHMIR LIFE)