MCX gold rallies 7%, silver crosses ₹3 lakh/kg as govt raises import duty on precious metals

At around 11:50 AM, the contract was trading ₹9,229 or 6.01% higher at ₹1,62,671 per 10 grams in business transactions of 9,344 lots, compared to the closing price of ₹1,53,442 per 10 grams in the previous session.

Silver prices also witnessed a sharp rally as it crossed the ₹3 lakh per kilogram mark, with the contract with expiry in July soaring as much as ₹22,367 or 8.01% to hit the session’s peak of ₹3,01,429 per kilogram on Wednesday.

At the time of writing, it was trading at ₹2,96,765 per kilogram, up by 6.34% or ₹6,518 in business transactions of 7,951 lots, as against the previous closing price of ₹2,79,062 per kilogram.

The government’s move to raise import duties is aimed at curbing precious metals imports amid a rising import bill due to the ongoing West Asia crisis.

The duty hike could moderate imports in the near term as the government looks to contain pressure on the current account deficit amid elevated crude oil prices and geopolitical tensions, they added.

The government on Wednesday hiked import duties on gold and silver to 15% from 6% as part of measures to curb inbound shipments of precious metals amid a rising import bill due to the West Asia crisis.

On Sunday, Prime Minister Narendra Modi made a clarion call for curbs on gold purchases, along with other austerity measures to save on foreign exchange. The Finance Ministry, in a notification, hiked the social welfare surcharge (SWS) and the agriculture infrastructure and development cess (AIDC), effective May 13.

The duty hikes will raise the overall customs duty on gold to 15%.

India's gold imports surged more than 24% to an all-time high of $71.98 billion in 2025-26. In volume terms, however, the shipments dipped 4.76 per cent to 721.03 tonnes in 2025-26.

Market participants said the sharp rise in domestic prices compared to global markets reflected the immediate impact of the higher import duty on bullion imports.

COMEX gold, silver

In the international markets, however, gains remained comparatively moderate.

COMEX gold futures for June delivery rose by 1.03%, to hit an intraday high of $4,734.80 per ounce. At the time of writing, it was trading at $4,716.60 per ounce, marking a 0.64% increase from the previous closing of $4,686.70 per ounce.

COMEX silver contract for July delivery advanced as much as 3.5% to reach the session’s peak of $88.58 per ounce. It was trading 2.09% higher at $87.38 per ounce at the time of writing.