Gold and silver futures witnessed a sharp rally on Wednesday after the government increased import duties on precious metals to 15 per cent in a bid to curb imports amid rising external pressures linked to the ongoing West Asia crisis.

Gold futures on the Multi Commodity Exchange (MCX) for June delivery jumped Rs 9,723, or 6.34 per cent, to Rs 1,63,165 per 10 grams.

Silver prices also surged nearly 7 per cent, moving closer to the Rs 3 lakh per kilogram mark as the higher import duty boosted domestic bullion prices.

The government’s decision to raise duties is aimed at reducing precious metal imports and easing pressure on the country’s growing import bill and foreign exchange reserves.