- Gold price surged on MCX after import duty on gold was doubled to 10%
- MCX gold June futures rose 6% to Rs 1,62,334 per 10 grams at 9 am Wednesday
- MCX silver July futures increased 6% to Rs 2,95,805 per kg at 9 am Wednesday
Gold Price Today: The yellow metal rate surged on MCX today after government doubled the import duty levied on gold, silver and platinum to 10%.
At 9 am on Wednesday, the MCX gold June futures contract rose 6% or Rs 9,188 to Rs 1,62,334 per 10 grams, while the MCX silver July futures soared 6% or 16,743 to Rs 2,95,805 per kg.
In a notification issued on Tuesday, May 12, the government hiked import duty these precious metals from 5% to 10%, effective from the midnight of Wednesday, May 13.
The move, which is expected to make gold, silver and platinum costlier, comes two days after Prime Minister Narendra Modi appealed to the citizens to defer their gold purchases, as the country's foreign exchange reserves have come under strain due to the Middle East conflict.
In addition to gold, silver and platinum, import duties have been raised on jewellery findings, and precious metal-related industrial imports, according to the notification issued by the Department of Revenue under the Customs Act.
Jewellery findings, or the small components such as hooks, clasps, clamps, pins and screw backs, will attract a customs duty of 5% in cases of gold and silver, whereas platinum findings will be charged with a 5.4%.
While addressing a public gathering in Hyderabad on Sunday, PM Modi urged people to postpone gold purchases for a year, to help support the country's forex. "I would appeal to people not to buy gold for weddings for one year," he said, adding, "In the current situation, we must place great emphasis on saving foreign exchange."
The hike in import duty is also significant as India is the world's second-largest importer of gold, after China. In financial year 2025-26 (FY26), India's gold imports jumped more than 24% to hit a record $71.98 billion. The yellow metal imports stood at $58 billion in FY25, $45.5 billion in FY24, $35 billion in FY23, $46.1 billion in FY22, and $34.62 billion in FY21.
Impact Of Global Tensions On Gold Prices
In contrast to India, gold dipped for the a second day in the global markets after high US inflation rate lifted the odds of the Federal Reserve raising interest rates this year. The yellow metal traded around $4,695 an ounce after a drop of 0.4% on Tuesday, May 12, Bloomberg reported. The US consumer price index rose the most since April 2023.
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