Gold prices experienced a 0.71% decline to ₹1,61,027 on Thursday following the government's decision to hike import duties on both metals to 15%. According to The Hindu BusinessLine, this represents a significant correction from the recent rally, with gold futures falling from the previous session's highs. The precious metal had previously shown renewed strength after experiencing a 19% drawdown from its all-time high of ₹1,64,000 per 10g reached on January 29, 2026. The recent import duty hike on gold and silver, combined with global tensions and safe-haven demand, continues to keep precious metal prices near record highs, though current volatility reflects profit-booking activities.
Silver futures experienced a more pronounced decline, dropping 1.92% to ₹2,94,450 amid profit-booking activities. As per The Hindu BusinessLine, this represents a significant correction from the precious metal's recent rally, with the white metal trading within the ₹2,94,000–₹2,96,000 range. The sharper decline in silver compared to gold is attributed to profit-booking after silver prices crossed the ₹3 lakh mark during Wednesday's trading session. MCX silver is currently trading at ₹2,97,338, a decline of 0.96% or ₹2,900, with resistance placed near ₹3 lakh–₹3.02 lakh and immediate support around ₹2.92 lakh–₹2.90 lakh. Despite the correction, the near-term trend for silver remains bullish due to continued safe-haven buying.
The scale of ETF outflows has been particularly striking, with North American gold ETFs experiencing over $12.7 billion in redemptions in March 2026 alone, according to Genuine Impact. State Street's May 2026 monthly gold monitor flagged these as the largest monthly redemptions in at least five years, with billions of dollars leaving SPDR Gold Shares in single days. The money simply moved elsewhere, with investors choosing alternative investments despite the crisis conditions. This represents a significant shift from the 186% year-on-year increase in gold ETF inflows that had previously driven demand, as reported by The Hindu BusinessLine.
According to commodity market experts, MCX gold continues to trade near the ₹1,61,500–₹1,62,000 range after witnessing a sharp breakout in the previous session. Analysts said immediate resistance for gold is placed around ₹1,62,000–₹1,63,000, and a sustained move above these levels could push prices towards ₹1,64,000–₹1,65,000. On the downside, support is seen in the ₹1,58,000–₹1,57,000 zone. In international markets, gold edged up 0.03% to $4,708 per ounce on COMEX, while silver declined 1.87% to $87.68 per ounce. Despite heightened volatility, the near-term outlook for gold remains cautiously positive, supported by safe-haven demand and ongoing geopolitical uncertainties.
