Gold, Silver Prices Slip After Import Duty Hike; Silver Falls Nearly 2%

Gold and silver prices witnessed a decline on Thursday after the government increased import duty on the precious metals to 15 per cent, prompting investors to book profits following recent gains.

On the Multi Commodity Exchange (MCX), gold futures for June delivery dropped during early trade and touched an intraday low of Rs 1,61,027. Silver futures for July delivery also saw heavy selling and fell to Rs 2,94,450 during the session.

Later in the day, gold recovered some losses and traded around Rs 1,62,783, while silver remained under pressure near Rs 2,97,338.

Market analysts said gold prices were consolidating near the Rs 1.61 lakh–Rs 1.62 lakh range after a strong upward movement in the previous trading session.

Experts believe the metal may face resistance between Rs 1.62 lakh and Rs 1.63 lakh. If prices move above this range, gold could test higher levels near Rs 1.64 lakh to Rs 1.65 lakh.

Support for gold is currently seen around Rs 1.58 lakh to Rs 1.57 lakh.

Analysts added that demand for safe-haven assets and continuing global tensions are still supporting the overall outlook for the yellow metal.

Silver prices also remained volatile after recent sharp gains.

Traders said the metal stayed within the Rs 2.94 lakh–Rs 2.96 lakh support zone despite weak opening levels. Resistance is likely near the Rs 3 lakh mark.

According to market experts, silver witnessed stronger selling pressure because investors chose to lock in profits after prices crossed Rs 3 lakh in the previous session.

In the international market, gold prices on COMEX traded slightly higher at $4,708 per ounce, while silver declined to $87.68 per ounce.

Also Read: Gold, Silver Rates Soar Following Customs Duty Hike