Gold prices in India have extended their record-breaking rally, with 24-karat gold reaching ₹1.62 lakh per 10 grams following the government's massive import duty increase. According to Goodreturns, 24-karat gold increased by ₹33 per gram to ₹16,233 per gram on Thursday, May 14, while 22-karat gold surged by ₹30 per gram to ₹14,880 per gram. The rally represents one of the largest single-day spikes in gold prices ever recorded in the country, with the surge occurring immediately after the government implemented a 15% import duty hike on precious metals. As per Reuters, bullion division heads described discount levels as "crazy" in the physical market, with dealers double-checking prices before executing deals.
India has now restricted gold imports to 100 kilograms under its advance authorization scheme, as announced by the Directorate General of Foreign Trade on Thursday. This represents a significant tightening of import controls beyond the previous 15% import duty hike from 6% that was implemented on May 13, 2026. The new restrictions come as part of efforts to curb overseas purchases and ease pressure on foreign exchange reserves, responding to PM Modi's appeal to curb gold consumption and help reduce the widening Current Account Deficit. The advance authorization scheme typically provides Indian exporters with certain exemptions, making the 100kg limit particularly restrictive for legitimate business requirements.
Internationally, U.S. gold futures for June delivery lost 1.3% to $4,625.70, falling to a more than one-week low amid broader market pressures. The dollar gained over 1% so far this week, making greenback-priced bullion expensive for holders of other currencies. Brent crude oil prices were up 5% this week, hovering above $106 a barrel, as the Iran war continues to keep the key Strait of Hormuz largely shut. Rising energy costs are sparking inflation worries and the prospect of sustained high interest rates, with Federal Reserve Bank of New York President John Williams indicating no immediate need for rate policy changes amid Middle East war uncertainty.
While gold prices continue their rally, silver prices in India fell to ₹300 per gram and ₹3 lakh per kilogram on Thursday, May 14, as per Goodreturns data. Spot silver fell 1.7% to $82.08 per ounce internationally, while platinum lost 0.6% to $2,043.25 and palladium was down 0.1% at $1,435.36. The week marked silver price's re-entry into the ₹3 lakh/kg territory after two months, though it saw some correction during the latest session. According to Quantum Mutual Fund report, gold and silver prices in India are likely to remain volatile as the Indian Rupee factor remains uncertain, while international gold rates are expected to see range-bound movement as markets eliminate the possibility of a Fed rate cut in 2026.
