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The prices of gold and silver jumped significanlty after the government hiked import duty on gold and silver to 15% from 6% on Wednesday as a measure to curb non-essential imports and conserve foreign exchange reserves amid the Middle East conflict.
On Wednesday, gold and silver jumped over 6%, with the bullions trading above Rs 1.62 lakh (per 10 grams) and Rs 3 lakh (per kg) repectively.
The hike comes after an appeal from Prime Minister Narendra Modi to postpone gold purchases alongside unnecessary foreign travel and conserve oil in order to save foreign exchange reserves.
Check live gold, silver rates and latest updates on precious metals here —
The Indian government's moves to veer investors away from gold might not yield the desired results. The effective import duty on gold has now risen to 15% from 6% earlier, in addition to PM Narendra Modi's appeal to refrain from buying gold for weddings — could impact physical gold purchases but investments could continue.
“The PM's appeal, combined with the sharp increase in import duties is likely to accelerate the shift from physical gold toward financial gold products such as Gold ETFs and Gold Fund of Funds (FoF). Higher tariffs raise the landed cost of jewellery and bullion, making exchange-traded products relatively more efficient, liquid and transparent for investors,” says Dr Manoranjan Sharma, chief economist at Infomerics Ratings.
Read More Here: Gold ETFs To Keep Shining
Gold imports rose more than 24% to an all-time high of $71.98 billion in 2025-26. However, the shipments dropped 4.76% to 721.03 tonnes. Soaring international prices kept the gold import bill high in FY26.
(Source: PTI)
The gold 24 Karat rate in India is Rs 1,62,890 per 10 Gram at 2:15 p.m.
The one kg silver price in India has slipped 1.03% and is currently at Rs 2,97,890 at 2:15 p.m.
(Source: Bullion Website)
The impact of import duty hike on precious metals is expected to be visible in the retail inflation data of May, and June. With high international prices of gold, the duty hike is not likely to have much of an impact on the current account deficit, as even lower imports would come in at a costlier price. Additionally,, the rupee is likely to remain under pressure, with currency touching a record low of 95.80 to a dollar.
(Source: PTI)
"Silver looks even more interesting from a medium-term perspective because it has both monetary and industrial demand drivers. The metal is benefiting from the global push toward solar power, electrification, EVs and electronics, which makes its demand profile broader than gold. That also means silver can remain more volatile, but in a rising precious metals cycle it can outperform gold," said Harshal Dasani, Business Head, INVAsset PMS.
Gold And Silver Prices In Bengaluru — May 14
According to Harshal Dasani, Business Head, INVAsset PMS, "Gold and silver remain firmly in a buy-on-dips zone, but investors should avoid chasing prices after such a sharp vertical move. The latest rally has been supported by a combination of safe-haven demand, rupee weakness, geopolitical uncertainty and domestic duty-related repricing. Gold continues to play its classic role as portfolio insurance, especially when currency volatility and crude-linked inflation risks are elevated. However, after the recent spike, some profit booking or sideways consolidation is healthy and should not be read as a trend reversal."
Stocks of major jewellery makers such as Titan, Kalyan Jewellers, Senco rose on Thursday, May 14. PN Gadgil led the gains with shares jumping over 2% follpwed by Kalyan and Titan. Jewellery stocks faced massive selling pressure in the yesterday amid push to curb gold purchases in the country. Notably, Sky Gold still remained in red, trading 0.86% down.
After opening in red on Thursday, MCX Gold June Futures rose 0.26% trading at Rs 1,61,979 per 10 grams at 11:34 am. MCX Silver July futures were 0.62% down at Rs 2,98,400 per kg.
Jaipur's Johari Bazaar traders raised concerns over PM Modi's appeal to reduce fuel consumption and defer gold purchases in order to conserve valuable foreign exchange reserves could hit the gems and jewellery sector hard. They also mentioned that the move could lead to losses for traders and unemployment for the large number of artisans in the sector.
(Source: PTI)
24K gold price in Mumbai - Rs 1,63,280/10 gms
22K gold price in Mumbai - Rs 1,49,408/10 gms
Silver price in Mumbai - Rs 2,98,160/ kg
In 2015, the government had introduced the gold monetisation scheme to mobilise idle gold held by households and institutions, and utilise it for productive purposes such as supplying gold to the gems and jewellery sector and gradually reduce India's reliance on gold imports.
Following a poor response due to high demand of physical gold among Indians, the scheme was discontinued in 2025. Nearly, 39,044 kg of gold was mobilised under the scheme.
(Source: PTI)
The decision to raise customs duty on gold and silver from 6% to 15% risks stoking a rise in gold smuggling, with larger jewellers bearing the brunt of the fallout, global brokerage Jefferies warned.
The brokerage said there will be some near-term mark-to-market gains on inventory held under schemes such as gold on lease, which offers a partial offset. However, investment demand — particularly in coins and bars — faces a more direct hit than wedding or occasion-led jewellery purchases, where demand elasticity tends to be lower.
At 9 am on Thursday, the MCX gold July futures contract fell 0.13% to Rs 1,61, 344 per 10 grams, while the MCX silver June futures dropped 0.92% to Rs 2,97, 485 per kg.
Gold imports rose more than 24% to an all-time high of $71.98 billion in 2025-26. However, the shipments dropped 4.76% to 721.03 tonnes. Soaring international prices kept the gold import bill high in FY26.
(Source: PTI)
India is the second largest importer of gold.The duty hike aims to discourage domestic consumption and save foreign excahnge reserves and crude oil soars amid the ongoing crisis in the Middle East.
In contrast to India, gold held a decline as high US inflation data raised possibility that the Federal Reserve will keep interest rates higher for longer. The yellow metal traded around $4,700 an ounce, after dropping 0.6%, Bloomberg reported.
MCX gold June futures contract closed flat at Rs 1,61, 504 per 10 grams, while the MCX silver July futures closed 7.68% higher at Rs 3,00,500 per kg on Wednesday, May 14.
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