Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, said gold maintained a firm upward bias last week, climbing almost 4 per cent on MCX and finishing near Rs 1,58,000. He noted that the rally was mainly driven by the recent 6 per cent increase in import duty, which pushed domestic prices sharply higher despite weakness in overseas markets.

Trivedi said the latest restrictions on silver imports do not amount to a complete ban, but instead indicate tighter control over the entry process. According to him, imports will now largely move through approved channels such as RBI-authorised banks, DGFT-recognised entities and jewellers operating through bullion exchanges.

He added that the back-to-back policy measures introduced within a short span appear aimed at managing foreign exchange outflows. Restricting silver imports could help curb immediate dollar demand and ease pressure on India’s reserves.

As a result, domestic consumers may face higher silver prices and wider premiums, though the broader objective remains protection of the country’s external account position, Trivedi said.