Gold traded higher on MCX on Wednesday as the government increased the import duties on precious metals. Gold’s June futures surged 6.19% to Rs. 1,62,933 per 10 grams. Silver's July futures jumped 6.61% to Rs. 2,97,499 per kg.
The central government has raised import tariffs on gold and silver to 15% from 6% in an effort to reduce overseas purchases of precious metals and curb pressure on foreign exchange reserves.
Meanwhile, oil prices declined. Brent crude futures fell 1.16% to $106.5 a barrel. US West Texas Intermediate (WTI) fell 1.17% to $101 a barrel.
24K gold rose by Rs. 1,391 to Rs. 1,67,890 per 10 grams. 22K gold advanced by Rs. 1,275 to Rs. 1,53,900. City-wise, Mumbai and Kolkata mirrored prices at Rs. 1,67,890, while Delhi was at Rs. 1,68,040, and Chennai at Rs. 1,68,000.
US gold held steady on Wednesday as investors await a key US-China summit in Beijing while keeping an eye on developments surrounding the West Asia conflict.
Spot gold was steady at $4,713.39 per ounce. US gold futures for June delivery gained 0.7% to $4,721.80.
Spot silver rose 1% to $87.40 per ounce, platinum slid 0.1% to $2,124.70, and palladium was up 0.4% at $1,497.
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"Inflation data out of the US has really watered down hopes, if not extinguished them, that there will be rate cuts from the Fed, and now the markets are kind of pricing in that the next move could be a hike as soon as the end of the year. So it kind of puts some downward pressure on gold," said Kyle Rodda, a senior financial market analyst at Capital.com.
According to Jigar Trivedi, Senior Research Analyst at IndusInd Securities, support for gold on MCX is seen at Rs. 1,59,000-Rs. 1,60,000 levels, while resistance is placed at Rs. 1,65,000-Rs. 1,67,000 levels. MCX silver rate may find support at Rs. 2,90,000 and resistance at Rs. 3,10,000 level”.