Mumbai, Gold and silver prices on Wednesday witnessed a sharp surge of up to 8 per cent after the government more than doubled the import duty on precious metals.

On the Multi Commodity Exchange (MCX), gold futures (June 5) advanced as much as 7.20 per cent or Rs 11,055 to touch an intraday high of Rs 1,64,497 per 10 grams as of 9:50 am.

The yellow metal was trading at Rs 1,62,728, up 6 per cent or Rs 9,286 from the previous close. Earlier in the session, it had opened at Rs 1,54,851, rising 0.91 per cent or Rs 1,409, which also remained the intraday low so far.

Meanwhile, silver futures (July 3) also recorded strong gains during the session, jumping as much as 8 per cent or Rs 22,367 to hit an intraday high of Rs 3,01,429 per kg.

The white metal was trading at Rs 2,97,655, up 6.66 per cent or Rs 18,593 from the previous close. It had opened at Rs 2,90,224, rising 4 per cent or Rs 11,162 over the previous settlement price.

The rally in precious metals came after the Centre’s decision to increase customs duties on imports.