Gold prices today surged at the domestic bullion market on off-take by stockists and traders following the latest hike in import duty on the precious metal.
Silver also rallied and hit a four-month high amid sustained speculative build-up and retraced Rs. 47,000 per kg level.
The Centre today hiked customs duty on gold, silver and platinum by 10 per cent to tackle the rupee volatility and curb fiscal deficit. This was the third such hike this year.
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Standard gold of 99.5 per cent purity hardened by Rs. 270 to end at Rs. 29,520 per 10 gm from Monday’s closing level of Rs. 29,250.
Pure gold of 99.9 per cent purity strengthened by Rs. 260 to finish at Rs. 29,660 per 10 gm from Rs. 29,400.
Silver ready (.999 fineness) jumped Rs. 1,920 to settle at Rs. 47,035 per kg from 45,115 on Monday.
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Globally, gold fell on investors’ profit-taking amid cautiousness ahead of US retail sales data as well as dollar firmness.
The hike in Indian import tax also undermined the sentiment. India, the largest gold consumer in the world, imported 860 tonnes of the yellow metal in 2012.
In London, spot gold was bid lower at USD 1,327.41 an ounce in early trade. However, silver was bid higher at USD 21.39 an ounce.