Gold June futures achieved a significant milestone, crossing the ₹1.64 lakh per 10 grams mark on MCX on Wednesday, May 13, according to latest market reports. The precious metal opened strongly, climbing by ₹11,055 or 7.2% to touch ₹1,64,497 per 10 grams during early trade, representing an intraday high. Silver July futures also soared, rising ₹22,367 or nearly 8% to hit ₹3,01,429 per kilogram, inching closer to the ₹3 lakh mark. This represents a substantial increase from the previous day's trading levels when gold was trading around ₹1,53,442 per 10 grams. In international markets, COMEX gold rose 0.52% to $4,710 per ounce while COMEX silver gained 2.28% to $87.54 per ounce.
The Central Government increased import duties on gold and silver from 6% to 15% after PM Modi's appeal to postpone gold purchases for an year as a measure to save forex amid the ongoing crisis in the Middle East. As per the official notification, the basic customs duty on various categories of gold and silver imports has been increased from 5% to 10%, alongside the existing 5% Agriculture Infrastructure and Development Cess (AIDC) remaining unchanged. Import duty on platinum was similarly increased from 6.4% to 15.4%. According to government sources, the measure forms part of a wider strategy to conserve foreign exchange reserves, contain the current account deficit and prioritise essential imports amid continuing global economic uncertainty. This policy change has significantly impacted precious metal pricing across commodity exchanges, with the total effective import duty on precious metals now standing at 15%.
On the Multi Commodity Exchange (MCX), gold June futures opened nearly 1% higher at ₹1,54,851 per 10 grams compared to the previous close of ₹1,53,442. The precious metal climbed by ₹9,206 to touch ₹1,62,648 per 10 grams during trading hours, also hitting the 6% upper circuit limit. In the domestic market, gold is likely to find support between ₹1,52,800 and ₹1,52,100, with resistance placed in the ₹1,54,000-₹1,54,850 range. Silver, meanwhile, has support at ₹2,74,400-₹2,70,700, while resistance is estimated between ₹2,83,000 and ₹2,88,000. Market analysts believe the higher import duty is likely to keep domestic prices elevated in the near term, while investors may continue to turn towards gold and silver as safe-haven assets amid global economic uncertainty. Among precious metal investment products, Quantum Gold Fund jumped nearly 15% to hit ₹143.37, while Tata Gold ETF gained around 12% and Zerodha Gold ETF climbed close to 9%.
The gems and jewellery sector could face significant challenges following the duty hike, with the All India Gems and Jewellery Council (GJC) warning that higher taxes could fuel smuggling activities and lead to the growth of an unofficial parallel market. According to GJC chairman Rajesh Rokde, after factoring in Customs Duty, GST and Agricultural Cess, the revised tax structure would raise the cost of gold by nearly ₹27,000 per 10 grams, compared with the earlier increase of around ₹13,500 per 10 grams. Gold imports in April dropped to levels not seen in nearly three decades after authorities introduced a 3% integrated goods and services tax (IGST) on gold and silver imports, prompting banks to temporarily suspend imports. However, industry participants have cautioned that steeper import taxes may once again encourage illegal inflows of gold, a trend that had moderated after tariffs were lowered in mid-2024. Market participants say the sudden increase in import taxes could push domestic bullion prices even higher in the coming sessions while also impacting jewellery demand and investment flows.
According to Harshal Dasani, Business Head, INVAsset PMS, silver crossing ₹3 lakh per kilogram represents a milestone but not a peak. He explained that silver sits at a rare intersection in the commodity complex, serving both monetary and industrial purposes simultaneously. On the industrial side, silver has become a critical input across semiconductors, photovoltaics, EV electronics, and AI hardware build-out, with every additional gigawatt of solar capacity deepening an already-arithmetic supply deficit. The mood in the silver market has been brightening up again as of late, with prices rising around 15% during the past week, pushing them back above USD 80 per ounce. This increase seems much more driven by flows than fundamentals, mirroring a broader risk-on move in financial markets on hopes of progress between the United States and Iran. Speculative traders and trend followers appear to be returning to the market, lured in by news of energy emergency measures in Peru, which is a major silver producer accounting for around 15% of global mine supplies. Strong global bullion prices, geopolitical tensions and India's higher import duties on precious metals continue to keep the domestic gold market on edge.
