Gold and Silver Rate Today: Prices Surge After India Raises Import Duty to 15%

13 May 2026 , 11:43 AM

India’s bullion market witnessed one of its sharpest single-day reactions in recent years after the government dramatically increased import duty on gold and silver from 6% to 15%. The move triggered a massive rally in domestic precious metal prices, sending gold and silver futures soaring on the Multi Commodity Exchange (MCX) while gold and silver ETFs posted double-digit gains.

The policy decision is being viewed as a major intervention aimed at reducing non-essential imports, supporting the weakening rupee, and containing pressure on India’s widening trade deficit at a time when global crude oil prices remain elevated due to rising geopolitical tensions in West Asia.

Government Tightens Control on Precious Metal Imports

The sharp increase in customs duty comes shortly after Prime Minister Narendra Modi urged citizens to avoid unnecessary gold purchases and focus on productive investments.

Officials believe rising imports of gold and silver were worsening pressure on India’s current account deficit, especially as crude oil prices remain above critical levels globally. Since India imports the majority of its gold requirements, any surge in bullion imports directly impacts forex reserves and increases dollar demand, putting additional strain on the rupee.

By sharply raising import duties, the government is attempting to discourage excessive buying of precious metals while stabilizing macroeconomic conditions.

Massive Rally in MCX Gold and Silver Prices

The announcement immediately sparked a huge rally in domestic bullion markets as traders rushed to price in the higher import costs.

Gold Prices Surge Over 6%

MCX Gold June futures skyrocketed by Rs 9,723, marking a gain of 6.34%, and touched Rs 1,63,165 per 10 grams.

The sharp jump reflects the direct impact of the higher customs duty structure, which significantly increases the landed cost of imported gold into India.

Silver Outperforms Gold

Silver prices witnessed an even stronger rally.

MCX Silver July futures surged by Rs 19,439, gaining nearly 7%, and approached Rs 2,98,500 per kilogram.

Analysts noted that silver continues to show stronger momentum compared to gold due to aggressive speculative buying and tighter global supply dynamics.

Gold and Silver ETFs Deliver Massive Gains

The rally extended to exchange-traded funds focused on precious metals, with investors rushing into bullion-linked assets.

Among the top performers:

• QUANTUMGOLD surged nearly 15%
• TATAGOLD jumped around 12%
• ZERODHAGOLD climbed approximately 9%

The strong ETF performance reflects expectations that domestic bullion prices may remain elevated if global uncertainty and currency pressures persist.

Why the Government Took This Step

Rising Crude Oil Prices Becoming a Major Concern

India is currently battling multiple external pressures simultaneously.

Escalating tensions in West Asia have pushed crude oil prices sharply higher, increasing India’s energy import bill. Since India is heavily dependent on imported crude oil, elevated oil prices are already widening the trade deficit.

At the same time, strong demand for imported gold was adding another layer of pressure on foreign exchange reserves and the rupee.

The government’s latest move appears designed to slow bullion imports and preserve foreign currency outflows.

Possible Impact on the Economy and Bullion Demand

Positive Outcomes Expected

The government hopes the duty hike could:

• Reduce gold and silver imports
• Help stabilize the rupee
• Narrow the trade deficit
• Ease pressure on forex reserves

Potential Negative Side Effects

However, the move may also create challenges:

• Jewellery demand could weaken sharply due to higher prices
• Retail buyers may postpone purchases
• Smuggling risks could increase as the price gap widens
• Bullion market volatility may remain elevated

Historically, sharp increases in import duties on gold have often led to a rise in unofficial supply channels and grey-market activity.

Key International Levels Traders Are Watching

Gold (International Market)

Analysts are closely monitoring the following levels:

• Support: $4,640–$4,610 per troy ounce
• Resistance: $4,740–$4,770

Silver (International Market)

• Support: $82.40–$80
• Resistance: $88.80–$92

Global price movements are expected to continue influencing domestic bullion trends alongside currency fluctuations and import policy changes.

Important MCX Technical Levels

Gold (MCX)

• Support Zone: Rs 1,52,800 – Rs 1,52,100
• Resistance Zone: Rs 1,54,000 – Rs 1,54,850

Silver (MCX)

• Support Zone: Rs 2,74,400 – Rs 2,70,700
• Resistance Zone: Rs 2,83,000 – Rs 2,88,000

Traders are being advised to remain cautious as volatility remains extremely high across bullion counters.

Market Outlook: Volatility Likely to Stay Elevated

Market experts believe the bullion market could remain highly volatile in the coming sessions as investors react to both domestic policy changes and global geopolitical risks.

Silver is currently showing stronger relative momentum and may continue outperforming gold in the near term if speculative participation remains strong.

At the same time, analysts are advising traders holding long positions to consider partial profit booking near major resistance zones due to the possibility of sharp price swings.

The government’s decision marks one of the most aggressive interventions in India’s bullion market in recent years and could significantly reshape demand patterns across the gold and silver ecosystem in the months ahead.

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