India, May 13 -- Gold and silver prices witnessed a sharp surge on Wednesday after the government increased import duties on precious metals to 15 per cent from the earlier 6 per cent in a move aimed at reducing imports and easing pressure on foreign exchange reserves.

The revised structure includes a 10 per cent basic customs duty along with a 5 per cent Agriculture Infrastructure and Development Cess on gold and silver imports.

Following the announcement, gold futures on the Multi Commodity Exchange climbed more than 6 per cent, crossing Rs 1.63 lakh per 10 grams, while silver prices surged nearly 7 per cent and approached the Rs 3 lakh per kilogram mark.

Industry bodies and bullion traders expressed concern over the sharp increase i...