MUMBAI, May 13 -- Bears in gold and silver are in for a rude shock after the government raised import duty on bullion to 15% from 6%, sending prices on the Multi Commodity Exchange (MCX) soaring.

As of 10:30 am, the active gold contract on MCX traded 6.02% higher at Rs.1.63 lakh per 10 gm, while silver surged 6.28% to Rs.2.97 lakh per kg. Trading on MCX runs from 9 am to 11:30 pm.

Gold and silver contracts on MCX have a maximum daily price limit of 9% in either direction. If international prices move beyond those levels, the exchange can relax the circuit limits in additional 3% bands.

The government on Wednesday raised import duties on gold and silver as part of efforts to curb precious metals imports amid a swelling import bill trigg...