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The gold price surged, and the price of silver surged to explosive levels on Thursday, following the government's decision to raise customs duty on gold and silver. The futures contract jumped up to ₹22,000 in minutes since the announcement, creating ripples in the commodity market.

The increase in duty is meant for tackling the issue of excessive importation of yellow metal and the current account deficit. The move has upset jewelers and investors and prompted significant speculation and hedging, according to analysts.

The gold June contract on MCX rose substantially, as did silver, by double digits. Jewelers from home have cautioned that jewelry and coins made from gold jewels will get costlier again in the days ahead.

Investors are being advised to watch out for developments across the world and for the rupee in the short to medium term, as this would bolster prices. The government is likely to come up with a formal notification soon.