Gold, silver prices surge up to 8% after import duty hike to 15%
Synopsis
The Centre's decision to more than double the import duty on gold and silver — from 6% to 15% — triggered an immediate 8% spike in domestic bullion prices on Wednesday. With gold touching ₹1,64,497 per 10 grams and silver breaching ₹3 lakh per kg intraday, the move marks one of the sharpest single-session duty-driven rallies in recent memory, raising costs for jewellers and retail buyers alike.
Key Takeaways
Gold futures (MCX) surged up to 7.20 per cent to an intraday high of ₹1,64,497 per 10 grams on 13 May .
Silver futures (MCX) jumped up to 8 per cent to an intraday high of ₹3,01,429 per kg .
The Centre raised import duty on gold and silver from 6 per cent to 15 per cent , including cess.
Import duty on platinum was also raised, from 6.4 per cent to 15.4 per cent .
The government cited current account deficit reduction and foreign exchange conservation as the rationale.
COMEX gold rose 0.52 per cent to $4,710/oz ; COMEX silver gained 2.28 per cent to $87.54/oz .
Gold and silver prices on Wednesday, 13 May surged as much as 8 per cent on domestic exchanges after the Centre more than doubled the import duty on precious metals — raising the levy on gold and silver from 6 per cent to 15 per cent. The sharp move triggered an immediate rally on the Multi Commodity Exchange (MCX), sending bullion to record intraday highs.
Gold Futures Hit Intraday High of ₹1,64,497
On MCX, gold futures (June 5) advanced as much as 7.20 per cent, or ₹11,055, to touch an intraday high of ₹1,64,497 per 10 grams as of 9:50 am IST. The contract had opened at ₹1,54,851, up 0.91 per cent or ₹1,409 from the previous close — which also marked the session's intraday low. By mid-morning, the yellow metal was trading at ₹1,62,728, up 6 per cent or ₹9,286.
Silver Jumps 8%, Crosses ₹3 Lakh Per Kg
Silver futures (July 3) posted even sharper gains, jumping as much as 8 per cent or ₹22,367 to hit an intraday high of ₹3,01,429 per kg — crossing the ₹3 lakh mark for the first time in the session. The white metal was subsequently trading at ₹2,97,655, up 6.66 per cent or ₹18,593. It had opened at ₹2,90,224, rising 4 per cent or ₹11,162 over the previous settlement price.
What the Government's Duty Hike Covers
The Centre has raised the import duty, including cess, on gold and silver from 6 per cent to 15 per cent. Import duty on platinum has also been increased, from 6.4 per cent to 15.4 per cent. According to government sources, the move is part of a broader strategy aimed at conserving foreign exchange, safeguarding the current account, prioritising essential imports, and strengthening India's economic resilience amid ongoing global uncertainties.
Global Cues and International Prices
The domestic rally came against a broadly firm international backdrop. COMEX gold rose 0.52 per cent to $4,710 per ounce, while COMEX silver gained 2.28 per cent to trade at $87.54 per ounce. The domestic premium over international prices widened sharply following the duty announcement, reflecting the immediate pass-through of higher import costs into futures pricing.
Why the Duty Hike Matters
India is among the world's largest importers of gold, and precious metal imports are a significant contributor to the current account deficit. By raising duties sharply, the government is attempting to curb discretionary import demand and preserve foreign exchange reserves at a time of elevated global uncertainty. Notably, this is one of the steepest single adjustments to precious metal import duties in recent years. Higher domestic prices, however, are likely to weigh on jewellery demand and retail sentiment in the near term. How sustained the rally proves will depend on whether physical demand adjusts downward fast enough to offset the price shock.
Point of View
Which means higher duties tend to push consumers toward informal channels rather than eliminate demand. The government's foreign exchange conservation rationale is sound given global headwinds, but the policy's long-term credibility depends on whether it is calibrated or reversed under industry pressure, as has happened before. The platinum duty hike — largely symbolic given India's thin platinum market — suggests this is a broad-sweep revenue and forex measure rather than a surgically targeted one.
NationPress
6 Aug 2026
Frequently Asked Questions
Why did gold and silver prices surge on 13 May 2025?
Gold and silver prices surged up to 8 per cent on 13 May 2025 after the Centre raised import duty on the precious metals from 6 per cent to 15 per cent. The sharp duty increase immediately raised the cost of imported bullion, driving up domestic futures prices on MCX.
What is the new import duty on gold and silver in India?
The government has raised the import duty, including cess, on gold and silver from 6 per cent to 15 per cent. Import duty on platinum has also been increased from 6.4 per cent to 15.4 per cent.
How high did MCX gold and silver prices go on Wednesday?
MCX gold futures hit an intraday high of ₹1,64,497 per 10 grams, up 7.20 per cent, while MCX silver futures touched ₹3,01,429 per kg, up 8 per cent, as of the morning session on 13 May.
Why did the government raise import duty on precious metals?
According to government sources, the duty hike is part of a broader strategy to conserve foreign exchange reserves, reduce the current account deficit, prioritise essential imports, and strengthen India's economic resilience amid ongoing global uncertainties.
How did international gold and silver prices move on the same day?
COMEX gold rose 0.52 per cent to $4,710 per ounce, while COMEX silver gained 2.28 per cent to $87.54 per ounce. The domestic price surge was significantly sharper than the international move, reflecting the direct impact of the import duty increase.
