Gold rates across India recorded a historic surge on Wednesday after the Government of India announced a sharp increase in import duty on precious metals, including gold, silver and platinum. According to reports from Goodreturns, the import duty on precious metals has been doubled from 5% to 10%, effective from May 13. This announcement triggered panic buying and a massive rally in domestic bullion markets, making the yellow metal massively more expensive overnight. The Finance Ministry, in a notification, hiked the social welfare surcharge (SWS) and the agriculture infrastructure and development cess (AIDC), as part of measures to curb inbound shipments of precious metals amid a rising import bill due to the Middle East crisis.
In Chennai, 24-carat gold prices surged dramatically after the duty hike announcement. As reported by Goodreturns, the 24K gold rate per 10 grams jumped to ₹1,68,000 from ₹1,56,330 in the previous session, with a sharp increase of ₹11,670 overnight. Meanwhile, 100 grams of 24K gold soared to ₹16,80,000 compared to ₹15,63,300 yesterday, with a massive rise of ₹1,16,700. According to Bullions website, Chennai leads the metros with a peak rate of ₹1,64,190 per 10 grams, while Hyderabad and Bengaluru follow closely at ₹1,63,970 and ₹1,63,840 respectively. This represents one of the most significant single-day price movements in recent memory for the Chennai bullion market.
Gold prices in Hyderabad rose sharply for the 24-carat variant, with 10 grams now costing ₹1,67,890 after a steep rise of ₹13,910. According to Goodreturns, 100 grams of 24K gold climbed to ₹16,78,900 rising by ₹1,39,100 in a single day. Similarly, 22-carat gold prices also rallied strongly, with 10 grams of 22K gold jumping by ₹12,750 to ₹1,53,900. In Mumbai, the 24-carat gold rate jumped significantly, with 10 grams rising by ₹13,910 to ₹1,67,890 and 100 grams climbing to ₹16,78,900 after recording a massive gain of ₹1,39,100. As per Bullions website, Mumbai is retailing at approximately ₹1,63,710 per 10 grams, while Kolkata follows at ₹1,63,490, both ahead of Delhi's ₹1,63,430 rate.
The impact of the import duty hike was also visible on the Multi Commodity Exchange (MCX), where both gold and silver futures witnessed explosive gains during morning trade. As reported by Goodreturns, MCX gold futures surged nearly ₹11,000 during intraday trade, while silver prices rallied by over ₹17,000. At the time of writing, Gold futures prices for June 5th contract surged to ₹1,62,417, gaining ₹8,975 or 5.85% during the session. Meanwhile, the MCX Silver July 3 contract jumped to ₹2,96,459, rising sharply by ₹17,397 or 6.23%. According to Bullions website, silver prices also advanced by 6%, to ₹2,77,000 per kg, with Mumbai leading at ₹2,96,770 per kg and Delhi at ₹2,96,260 per kg.
In the international market, spot gold slipped $42.33, or 1% to $4,692.64 per ounce while silver fell 3.04% to USD 83.49 per ounce. This contrasts sharply with the domestic rally, highlighting the impact of India's policy measures on precious metals pricing. Industry leaders have called for calm while supporting the government's decision, stating that the move is likely a temporary measure to protect India's economy and foreign exchange reserves. According to Goodreturns, Rajesh Rokde, Chairman of the All India Gem And Jewellery Domestic Council (GJC), said the increase is a temporary and calibrated measure in the present economic scenario. Avinash Gupta, Vice Chairman of GJC, emphasized that gold and jewellery is deeply connected with India's traditions and savings culture, urging the trade fraternity to avoid panic and continue business with confidence and responsibility.
