Gold prices saw sharp swings on Wednesday after the Union government raised import duty on gold and silver items to 15%, according to an official order. The move comes amid the Centre’s push to curb overseas purchases and ease pressure on foreign exchange reserves.
Prime Minister Narendra Modi, speaking at a public meeting in Telangana, urged people to avoid buying gold for the next one year and help strengthen the country’s forex position. The appeal was made as global uncertainty, including tensions in West Asia, has pushed up crude oil prices and created supply challenges for fuel-related products.
Following the duty hike, gold prices surged during the day, rising by ₹8,560 per sovereign to ₹1,23,200, while the per-gram rate climbed by ₹1,070 to ₹15,400. However, by evening, gold corrected by ₹400 per gram and ₹3,200 per sovereign, settling at ₹15,000 per gram and ₹1,20,000 per sovereign.
Silver also moved higher initially, gaining ₹30 per gram to ₹330 and ₹30,000 per kg to ₹3,30,000, before easing later. By evening, silver slipped ₹10 per gram to ₹320 and fell ₹10,000 per kg to ₹3,20,000.
The government said the higher duty is intended to reduce imports of gold and silver, and it will apply to industrial imports linked to platinum, jewellery parts and other precious metals.
