Gold and silver prices turned volatile on the Multi Commodity Exchange (MCX) on Thursday after a strong rally in the previous session following the government's decision to hike import duty on the precious metals. The volatility came as traders booked profits after the sharp uptick.
Gold and Silver Prices on MCX
On MCX, gold June futures were trading at Rs 71,250 per 10 grams, down by Rs 120 from the previous close, after hitting an intraday high of Rs 71,480. Silver July futures were at Rs 82,500 per kg, down by Rs 350, after touching a high of Rs 83,100. The correction was seen as a healthy pullback after the rally.
Impact of Import Duty Hike
The government on Wednesday hiked the import duty on gold and silver from 10% to 15%, effective immediately. This led to a sharp spike in domestic prices as traders anticipated higher costs. However, the rally fizzled out as global cues remained mixed and the dollar strengthened.
City-Wise Gold Rates
Here are the gold rates (22 carat per 10 grams) in major cities:
- Delhi: Rs 71,200
- Mumbai: Rs 71,100
- Chennai: Rs 71,300
- Kolkata: Rs 71,150
- Bengaluru: Rs 71,200
- Hyderabad: Rs 71,250
- Ahmedabad: Rs 71,180
- Jaipur: Rs 71,220
Silver rates (per kg) in major cities:
- Delhi: Rs 82,500
- Mumbai: Rs 82,400
- Chennai: Rs 82,600
- Kolkata: Rs 82,450
- Bengaluru: Rs 82,500
- Hyderabad: Rs 82,550
- Ahmedabad: Rs 82,480
- Jaipur: Rs 82,520
Analysts expect continued volatility in the near term as the market adjusts to the new duty structure. Investors are advised to remain cautious and consider the impact on their portfolios.
