The central government has raised import tariffs on gold and silver to 15% from 6% in an effort to reduce overseas purchases of precious metals and ease pressure on foreign exchange reserves. According to reports from Livemint and The Economic Times, the government has increased the basic customs duty on several categories of gold and silver imports to 10% from 5%, while the Agriculture Infrastructure and Development Cess (AIDC) of 5% continues, taking the total effective import tax to 15%. This move aims to curb imports, narrow the trade deficit, and support the rupee. The revised rates took effect from midnight, leading to immediate market response with gold and silver prices opening sharply higher on Multi Commodity Exchange (MCX) on Wednesday.
Following the duty increase, gold and silver prices in India jumped over 6% each on Wednesday, as reported by Livemint and The Economic Times. MCX gold futures for June 2026 delivery rallied ₹9,206 or 6% to ₹1,62,648 per 10 grams, while MCX silver futures for July 2026 delivery jumped ₹16,743 or 6% to ₹2,95,805 per kg. The significant price movement reflects immediate market response to the policy change, with the government's strategy to reduce precious metal imports through higher tariffs showing immediate impact on domestic pricing. In the previous session, silver had ended higher, while gold had dropped marginally lower, making Wednesday's surge particularly notable.
In international markets, spot gold price fell 0.4% to $4,695.99 per ounce, while US gold futures for June delivery gained 0.4% to $4,705.30, according to The Economic Times. Spot silver rose 0.2% to $86.71 per ounce after touching its highest level since March 11 earlier in the session. Among other precious metals, platinum declined 0.8% to $2,109.53, while palladium slipped 0.2% to $1,487.47. The divergent performance between domestic and international markets highlights the impact of India's policy changes on local pricing dynamics.
According to Jain from The Economic Times, gold has support at $4,640-$4,610 and resistance at $4,740-$4,770 per troy ounce. Silver has support at $82.40-$80.00, while resistance is seen at $88.80-$92.00 per troy ounce in the current session. For MCX, gold has support at ₹1,52,800-1,52,100 and resistance at ₹1,54,000-1,54,850, while silver has support at ₹2,74,400-2,70,700 and resistance at ₹2,83,000-2,88,000. He advised traders holding long positions in both precious metals based on these recommendations to book profits near the target levels. The technical analysis suggests continued upward momentum for both gold and silver in the near term.
