Gold and silver prices have jumped sharply after the central government increased the import duty on both precious metals from 6 percent to 15 percent.
The move is aimed at reducing heavy imports and controlling the country’s growing current account deficit (CAD).
The decision has already impacted the bullion market, with gold and silver prices reaching record levels in several cities across India.
Gold and Silver Prices See Big Jump
After the duty hike announcement, silver prices on MCX touched ₹2,95,805 per kilogram, while gold prices climbed to ₹1,62,648 per 10 grams.
Silver witnessed a particularly strong rally and even hit the upper circuit limit of 6 percent.
Experts believe rising global inflation and geopolitical tensions are also supporting the sharp rise in precious metal prices.
In retail markets, silver prices crossed ₹3 lakh per kilogram in Chennai.
In cities like Delhi, Mumbai, and Kolkata, silver prices remained around ₹2,90,100 per kilogram.
Latest Gold Rates in Major Cities
Here are the latest gold prices:
| City | 24 Carat Gold (per gram) | 22 Carat Gold (per gram) |
|---|---|---|
| Delhi | ₹16,804 | ₹14,331 |
| Mumbai | ₹16,789 | ₹15,390 |
| Chennai | ₹15,634 | ₹14,331 |
| Kolkata | ₹16,789 | ₹15,390 |
| Bengaluru | ₹16,789 | ₹15,390 |
| Kerala | ₹16,789 | ₹15,390 |
| Vadodara | ₹16,794 | ₹15,395 |
| Ahmedabad | ₹16,794 | ₹15,395 |
| Pune | ₹16,789 | ₹15,390 |
Why Did the Government Increase Import Duty?
India imports most of its gold and silver from other countries, and payments are made in US dollars.
Due to rising crude oil prices and global tensions in West Asia, pressure on India’s foreign exchange reserves has increased significantly.
To reduce the outflow of dollars, the government has decided to discourage non-essential imports like gold and silver by increasing import duty.
According to official data, India’s gold imports rose by 24 percent and reached a record $71.98 billion during the financial year 2025-26.
This widened the country’s trade deficit to $333.2 billion and pushed the current account deficit to 1.3 percent of GDP.
The government believes the higher duty may help reduce imports and support the Indian rupee, which has been weakening continuously against the US dollar.
What It Means for Buyers
The latest price rise may make jewellery and silver purchases more expensive in the coming weeks.
Experts say wedding buyers and investors could feel the impact the most if prices continue to rise further.
At the same time, investors are closely watching global market trends, inflation data, and future government decisions related to imports and taxation.
