Now the Indian bullion market is reeling from a massive fiscal shock. Gold and silver prices on Wednesday witnessed a sharp surge of up to 8 per cent after the government more than doubled the import duty on precious metals to stabilize the national economy. Therefore, on the Multi Commodity Exchange (MCX), gold futures for June 5 advanced by a staggering ₹11,055 to hit an unprecedented intraday high. Meanwhile, silver futures have crossed the psychological ₹3 lakh per kg mark for the first time. Following the Centre’s decision to prioritize “economic resilience” amid global uncertainty, the landing cost of precious metals has shifted overnight.
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The 15 Percent Shift: Doubling the Import Duty Burden
Now the most significant driver of today’s price action is a bold policy move from New Delhi. The government has raised the import duty, including cess, on gold and silver from 6 per cent to 15 per cent. Therefore, the immediate cost of bringing precious metals into India has seen a nearly 150% increase in duty terms.
First, the decision aims to discourage non-essential imports during a period of global supply chain volatility. Next, the higher duty serves as a mechanical necessity to keep the Indian Rupee stable against international headwinds. Thus, domestic buyers are now facing a significantly higher price floor than they were just 24 hours ago.
So while the move was unexpected by many in the retail sector, it aligns with a “stability-first” fiscal approach. Meanwhile, the bullion trade is scrambling to adjust its pricing structures to reflect the new 15% benchmark. Therefore, the “gold-rush” of early 2026 is facing its first major regulatory hurdle.
MCX Gold Rally: Breaking Through the ₹1.64 Lakh Ceiling
Now the reaction on the Multi Commodity Exchange was instantaneous and aggressive. Gold futures for June 5 advanced as much as 7.20 per cent, adding ₹11,055 to their value in a single morning session. Therefore, the intraday high reached a stunning ₹1,64,497 per 10 grams as of 9:50 am.
First, the yellow metal opened at ₹1,54,851, which remained the intraday low. Next, the buying pressure intensified as traders realized the sheer scale of the duty hike. Thus, the metal was eventually seen trading at ₹1,62,728, up roughly ₹9,286 from its previous close.
So the market is currently in a “price discovery” mode, trying to balance domestic duty hikes with global spot movements. Meanwhile, jewelry manufacturers and physical bullion dealers have paused sales in some regions to update their rate boards. Therefore, the ₹1.64 lakh mark represents a new historic high for the Indian market.
Silver’s Historic Leap: Crossing the ₹3 Lakh per Kg Milestone
Now silver has outpaced even gold in its percentage surge, jumping as much as 8 per cent during the session. The white metal added ₹22,367 to hit an intraday high of ₹3,01,429 per kg. Therefore, silver has officially entered the “3-Lakh era,” a milestone that seemed distant just a month ago.
Silver Performance (May 13, 2026):
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Intraday High: ₹3,01,429 per kg.
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Price Gain: ₹22,367 at peak.
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Opening Rate: ₹2,90,224 (Up 4%).
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Current Trading: ~₹2,97,655.
First, the opening of the session already saw an ₹11,000 gain over the previous settlement. Next, as the 15% duty news solidified, investors rushed to accumulate the white metal before further spikes. Thus, the industrial and investment demand for silver is now clashing with a much tighter supply-side cost.
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Platinum and Beyond: Broadened Customs Duty Revisions
Now the government’s strategy was not limited to just gold and silver. The import duty on platinum has also been increased, moving from 6.4 per cent to a high of 15.4 per cent. Therefore, the entire precious metals complex is now operating under a high-duty umbrella.
First, this broadened scope prevents traders from shifting their capital into alternative precious metals to bypass the gold tax. Next, the move ensures that all luxury bullion imports contribute equally to the national conservation goal. Thus, platinum investors are seeing a similar ₹10,000+ surge in per-gram costs.
So the unified duty structure at roughly 15% simplifies the customs process but increases the burden on the end consumer. Meanwhile, high-end electronics and jewelry sectors that rely on platinum are re-evaluating their Q3 manufacturing costs. Therefore, the “precious metal premium” is now a permanent feature of the 2026 market.
Strategic Rationale: Conserving Forex and Safeguarding the CAD
Now the government has been transparent about the reasons behind this “sharp surge” in duties. According to official sources, the move is a mechanical necessity to reduce the current account deficit (CAD). Therefore, by making gold and silver more expensive, the Centre aims to discourage massive outflows of foreign exchange.
First, the broader strategy focuses on safeguarding India’s economic resilience amid global uncertainties. Next, the government is prioritizing “essential imports” like crude oil and defense tech over luxury commodities. Thus, the duty hike is a tool for national currency management.
So the conservation of forex reserves is seen as a priority for maintaining the Rupee’s valuation in the global market. Meanwhile, the “dual blockade” of the Strait of Hormuz continues to exert pressure on energy costs. Therefore, the bullion duty hike provides the fiscal space needed to manage other, more critical economic shocks.
Global vs. Domestic: Comparing COMEX and MCX Movements
Now it is important to distinguish between global market trends and the domestic “duty-driven” rally. While MCX surged by 8%, the international market saw a much more modest move. COMEX gold rose just 0.52 per cent to $4,710 per ounce. Therefore, the vast majority of the Indian price hike is purely domestic and regulatory.
Global Spot Performance:
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COMEX Gold: $4,710 / oz (Up 0.52%).
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COMEX Silver: $87.54 / oz (Up 2.28%).
First, COMEX silver’s 2.28% gain provided a small “tailwind” for the Indian surge. Next, the disparity between the 0.5% global rise and the 8% Indian rise highlights the 9% additional duty impact. Thus, Indian investors are now paying a massive premium compared to their global counterparts.
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Expert Take: Prioritizing Essential Imports Over Bullion
Now commodity experts and government sources agree that the “economic resilience” strategy is the primary driver. In a period of high global instability, hoarding gold is seen as a drain on national reserves. Therefore, the government is using price as a deterrent to shift capital into more productive sectors.
First, the duty hike is expected to significantly cool down the physical demand for gold jewelry in the short term. Next, investors may pivot toward Digital Gold or Sovereign Gold Bonds (SGB) which do not require physical imports. Thus, the “paper gold” market may see a surge in interest as physical bullion becomes a luxury for the few.
So the 15% duty is likely to stay in place until the current account deficit stabilizes. Meanwhile, the market is bracing for a period of low volume as buyers digest the new rates. Therefore, May 13 will be remembered as the day the bullion market faced its biggest fiscal reset of the year.
FAQ: Understanding the 2026 Precious Metals Duty Hike
1. How much is the new import duty on gold and silver? Now, the government has increased the duty from 6% to 15% (including cess).
2. Why did gold prices hit ₹1.64 lakh today? First, the price surge was a direct reaction to the doubling of the import duty. Next, traders added the 9% duty gap to the existing market price.
3. Did silver also hit a record high? So yes. Silver futures jumped 8% to hit an intraday high of ₹3,01,429 per kg on the MCX.
4. What about platinum prices? Next, the duty on platinum was also hiked to 15.4%, causing a similar sharp surge in its trading price.
5. Why is the government discouraging gold imports? Now, the goal is to conserve foreign exchange reserves and reduce the current account deficit during global economic uncertainty.
6. Is the global price of gold also rising? Finally, while COMEX gold rose by a modest 0.52%, the massive 8% jump in India is primarily due to the domestic duty hike.
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