In economics, terms of demand and supply are widely used. The law of demand and supply is true for the gold and silver also.
Let us try to understand this concept with an example.
In latest budget of 2019, government of India has increased the import duty on gold from 10% to 12% which resulted in the fall of supply as compared to the demand of gold in India.
Only 2% rise in import duty, has adversely affected the gold prices in India.