Gold And Silver Prices Surge Across India On May 13; 24K Rates Climb

Gold and silver prices in India remained in focus on May 13 after the government announced a sharp increase in import duties on precious metals, raising levies on gold and silver to 15% from 6%. The move is aimed at curbing non-essential imports and easing pressure on India’s foreign exchange reserves amid global economic uncertainty linked to ongoing geopolitical tensions.

The revised duty structure also includes an increase in import tax on platinum, which has been raised from 6.4% to 15.4%. Corresponding adjustments have been made for related products such as gold and silver dore, coins, and findings. Officials described the decision as a “preventive and calibrated measure” intended to manage external vulnerabilities without disrupting domestic demand conditions abruptly.

India, the world’s second-largest consumer of gold after China, relies heavily on imports to meet domestic jewellery and investment demand. As a result, changes in import duties can have a direct impact on domestic pricing trends, often influencing retail rates across major cities including Mumbai, Delhi, Kolkata, Chennai, Bengaluru, and Hyderabad.

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The policy shift follows broader calls for economic restraint, including recent appeals for reduced non-essential consumption such as gold purchases. Authorities have linked these measures to the need for preserving foreign exchange reserves and managing the impact of elevated global commodity prices, particularly amid sustained volatility in energy and precious metals markets.

Market participants are now closely watching how the duty hike will translate into retail price movements in the coming days. While global bullion trends remain a key driver, domestic tax changes are expected to add upward pressure on gold and silver prices, potentially affecting jewellery demand during the ongoing buying season.

City-wise rates for 24K and 22K gold, along with 999 silver, continue to vary based on local taxes and market conditions. However, traders suggest that the latest duty revision may lead to short-term price adjustments across major Indian cities as the market absorbs the policy change and aligns with updated import costs.

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