Gold and silver prices rallied sharply on Wednesday after the Centre announced a steep increase in customs duties on precious metal imports.
On the Multi Commodity Exchange of India, gold futures for June 5 climbed as much as 7.20 per cent, or Rs 11,055, to reach an intraday high of Rs 1,64,497 per 10 grams by 9:50 AM.
The contract later traded at Rs 1,62,728, showing a gain of 6 per cent or Rs 9,286 over the previous close.
Gold had opened the session at Rs 1,54,851, up 0.91 per cent or Rs 1,409, which remained the day's lowest level.
Silver futures for July 3 also recorded strong buying interest. Prices surged 8 per cent, or Rs 22,367, touching an intraday high of Rs 3,01,429 per kg.
The metal was later trading at Rs 2,97,655, higher by 6.66 per cent or Rs 18,593 from the previous settlement.
At the opening bell, silver started at Rs 2,90,224, marking a rise of 4 per cent or Rs 11,162.
The sharp rise followed the government's decision to more than double import duties on precious metals.
The effective import tax on gold and silver, including cess, has been raised from 6 per cent to 15 per cent, while platinum duty has increased from 6.4 per cent to 15.4 per cent.
Officials said the move intends to curb pressure on foreign exchange reserves, contain the current account deficit and prioritise essential imports during a period of global uncertainty.
In overseas markets, COMEX gold gained 0.52 per cent to $4,710 per ounce, while COMEX silver advanced 2.28 per cent to $87.54 per ounce.