Gold and silver prices have suddenly taken a big hit after the government increased the import duty on precious metals.
The sharp rise seen in recent weeks has now slowed down, and both metals are witnessing heavy selling pressure.
Silver prices saw the biggest fall, while gold also became much cheaper within hours of trading opening on Friday.
Silver Falls Over ₹26,000 in Just Two Days
Silver prices dropped heavily on the Multi Commodity Exchange (MCX).
As soon as trading began on Friday, silver became cheaper by more than ₹17,000 per kg.
Silver futures for July 3 delivery had closed at ₹2,91,102 per kg on Thursday.
But on Friday, the price slipped to ₹2,73,636 per kg. This means silver fell by ₹17,466 in a single day.
The bigger shock came when compared to prices from two days earlier. Silver was trading at ₹3,00,238 per kg, which means it has now crashed by ₹26,602 in just two days.
Earlier, after the import duty hike, silver prices had jumped sharply and even gained around ₹22,000 on May 13.
But the rally quickly lost momentum and prices started falling from the very next day.
Silver Still Far Below Record High
Despite the recent rise, silver is still much lower than its all-time high.
In January, silver crossed the historic ₹4 lakh mark for the first time and touched a lifetime high of ₹4,57,328 per kg on MCX.
After the latest correction, prices are now lower by ₹1,83,692 from that peak.
Gold Prices Also Turn Weak
Gold prices also saw a sharp decline after the increase in import duty.
Gold futures for June 5 delivery had closed at ₹1,61,978 per 10 grams in the previous session.
On Friday, the price dropped to ₹1,58,852 per 10 grams.
This means 24-carat gold became cheaper by ₹3,126 per 10 grams within a short period.
Gold Remains Cheaper Than Its Peak Level
Like silver, gold is also trading much below its record high levels.
Gold’s lifetime high on MCX was ₹2,02,984 per 10 grams. After the latest fall, gold prices are now lower by ₹44,132 from that record level.
