BackECONOMY
Gold, silver futures rally 7% after govt raises import duty on bullion
India's government raised import duties on gold and silver to 15% from 6%, effective May 13, 2026, prompting a sharp rally in domestic gold and silver futures. The move aims to curb bullion imports amid a rising import bill and West Asia-related tensions, with further market reactions in both domestic and international markets.
Why It Matters
The duty hike signals a policy lever to curb bullion imports and protect the current account, potentially impacting domestic prices and investment flows in precious metals.
Timeline
4 Events
International bullion prices rise vs. domestic jump
May 13, 2026
In international markets, Comex gold futures for June delivery rose by USD 21.40 (0.46%) to USD 4,708.10 per ounce, while silver advanced 2.12% to USD 87.40 per ounce.
Domestic bullion futures rally on MCX after duty hike
May 13, 2026
Gold futures for June delivery on the MCX rose by ₹9,723, or 6.34%, to ₹1,63,165 per 10 grams. Silver futures for the most-traded July contract jumped by ₹19,439, or 6.97%, to ₹2,98,501 per kilogram. Traders attributed the move to the higher import duties, with prices jumping following the duty increase.
Import duties on bullion hiked to 15% (effective May 13)
May 13, 2026
The Finance Ministry, in a notification, hiked the social welfare surcharge (SWS) and the agriculture infrastructure and development cess (AIDC), effective May 13, raising the overall customs duty on gold to 15% from 6% as part of measures to curb inbound shipments of precious metals amid a rising import bill due to the West Asia crisis.
PM Modi calls for curbs on gold purchases
May 10, 2026
On Sunday, Prime Minister Narendra Modi made a clarion call for curbs on gold purchases, along with other austerity measures to save on foreign exchange.