Global gold prices surged, hitting a 7-week high, while silver pushed near record highs on strong industrial demand.
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The government, facing worried MPs and expensive festival seasons, confirmed it won’t fix retail prices but highlighted a massive import duty cut implemented to cool demand.
Let’s be real. Gold and silver are supposed to be symbols of tradition and savings, but they are getting impossibly expensive for Indian households.
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Parliamentary data reveals the issue: over the last decade (2014-2025), while the physical import volume of gold dropped 17%, the value we paid shot up a staggering 69%, landing at $58 billion last year. The cost is the primary problem.
The Government’s Answer: Duty Cut vs. Price Control
DMK MPs asked in Lok Sabha about potential stabilization measures—things like tax tweaks or retail price controls—to ease the burden on families during peak wedding and festival season.
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Here’s the kicker: Minister of State for Finance Pankaj Chaudhary shut down the idea of retail price controls immediately. He stated clearly that precious metal prices are market-determined; the government does not fix them.
The actual relief measure was a targeted intervention:
| Government Action | Details | Impact |
| Customs Duty Cut | Lowered from 15% to 6% in July 2024. | Reduces the landed cost, curbs smuggling incentives, and aligns domestic prices closer to global trends. |
| Physical Demand Schemes | Promotes Gold Monetization Scheme (GMS), ETFs, and Sovereign Bonds. | Mobilizes idle domestic gold to meet demand from local stocks, reducing reliance on fresh imports. |
The thing is, these policy moves are crucial for external stability. The Finance Ministry also noted that the RBI’s gold reserves—which hit 879.58 tonnes as of March 2025—continue to bolster confidence in the rupee, or nothing.
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Why Prices Are Still Rising Now
Prices remain seriously elevated despite the duty cuts. Why? Gold is finding support from weak US data, a softer dollar, and major bets on early Federal Reserve rate cuts.
Silver is outperforming entirely due to strong industrial demand and supply constraints globally.
Analysts expect this market volatility to stick around for the near term. For 24-carat gold buyers in India, the price is sitting high at ₹13,386 per gram.
For most buyers, even minor dips matter during peak buying season.
The government has made its move on imports. The rest is up to global markets and US monetary policy. Get ready for a bumpy ride…….
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