Mumbai, May 13 : Gold and silver prices on Wednesday witnessed a sharp surge of up to 8 per cent after the government more than doubled the import duty on precious metals.

On the Multi Commodity Exchange (MCX), gold futures (June 5) advanced as much as 7.20 per cent or Rs 11,055 to touch an intraday high of Rs 1,64,497 per 10 grams as of 9:50 am.

The yellow metal was trading at Rs 1,62,728, up 6 per cent or Rs 9,286 from the previous close. Earlier in the session, it had opened at Rs 1,54,851, rising 0.91 per cent or Rs 1,409, which also remained the intraday low so far.

Meanwhile, silver futures (July 3) also recorded strong gains during the session, jumping as much as 8 per cent or Rs 22,367 to hit an intraday high of Rs 3,01,429 per kg.

The white metal was trading at Rs 2,97,655, up 6.66 per cent or Rs 18,593 from the previous close. It had opened at Rs 2,90,224, rising 4 per cent or Rs 11,162 over the previous settlement price.

The rally in precious metals came after the Centreâ??s decision to increase customs duties on imports.

The government has raised the import duty, including cess, on gold and silver from 6 per cent to 15 per cent.

Meanwhile, import duty on platinum has been increased from 6.4 per cent to 15.4 per cent.

Through this move, the government aims to reduce the current account deficit and conserve foreign exchange reserves amid ongoing global uncertainty.

According to government sources, the increase in import duty on precious metals is part of a broader strategy aimed at conserving foreign exchange, safeguarding the current account, prioritising essential imports, and strengthening Indiaâ??s economic resilience amid global uncertainties.

In the international market, COMEX gold rose 0.52 per cent to $4,710 per ounce, while COMEX silver gained 2.28 per cent to trade at $87.54 per ounce.

/IANS