Gold, silver ETFs jump up to 15% on duty hike 2026

What changed and why markets reacted

Gold and silver-linked assets moved sharply higher on May 13 after the Centre raised import tariffs on gold and silver to 15% from 6%, according to government notifications issued on Wednesday. The revised duty structure was reported to have come into effect from midnight. The government’s move was described as part of efforts to reduce imports of precious metals and ease pressure on the country’s foreign exchange reserves. In markets, the immediate transmission channel was straightforward: a higher import duty raises the landed cost of bullion, which lifts domestic spot-linked prices. That pricing effect fed into commodity futures, ETFs tracking precious metals, and stocks of lenders that hold gold jewellery as collateral.

Import duty raised to 15%: what the structure looks like

Market reports said the effective customs duty on gold and silver imports has been increased to 15% from 6%. Under the revised structure, the government has imposed a 10% basic customs duty along with a 5% Agriculture Infrastructure and Development Cess (AIDC). Taken together, the combined import tax totals 15%. For investors, the details matter because domestic prices for gold and silver often adjust quickly when import costs move, even before physical supply chains fully reset.

MCX gold and silver futures surge at the open

Precious metal prices saw a sharp jump on the Multi Commodity Exchange (MCX) following the duty change. Domestic gold futures were reported up 7.2% at ₹1,64,497 per 10 grams, while silver futures surged 8% to ₹3,01,429 per kilogram. In another market snapshot, gold futures for June 2026 delivery rose ₹9,206, or 6%, to ₹1,62,648 per 10 grams. Silver contracts for July 2026 delivery climbed ₹16,743, or 6%, to ₹2,95,805 per kilogram. Separately, another update said gold futures for June delivery traded at ₹1,62,621 per 10 grams, up 6% from the previous close of ₹1,53,442, while silver futures for July delivery rose 6.6% to ₹2,97,499 per kilogram.

Gold and silver ETFs climb, with some counters spiking

Gold and silver exchange-traded funds (ETFs) rallied alongside the spike in futures. One set of reports pegged gains in many large gold ETFs in the 4% to 6% range, including Nippon India Gold ETF, Tata Gold ETF, HDFC Gold ETF and ICICI Prudential Gold ETF. Silver ETFs also climbed sharply, with Tata Silver ETF, Nippon India Silver ETF and HDFC Silver ETF rising between 4% and 6% in that window.

Another market update highlighted even larger intraday moves in select products. Among 25 gold ETFs tracked in that report, Quantum Gold Fund was cited as the top gainer, rising nearly 15% to an intraday high of ₹143.37 versus its previous close of ₹124.90. The same update noted Tata Gold ETF advancing 12%, while Zerodha Gold ETF climbed around 9%. Across the broader ETF set, another compilation said multiple gold ETFs were up roughly 4% to 6.5% by around 10:10 AM, while several silver ETFs rose in the 5% to 6% range.

Why a duty hike can support precious metal ETFs

The duty hike was described as positive for gold and silver ETFs because costlier physical imports can steer some demand toward financial exposure through ETFs. When domestic bullion prices rise, ETF net asset values can reflect that move because their underlying value is linked to the metal price. The immediate price jump on MCX helped lift ETF prices in the session. That said, the dispersion across ETFs in intraday trading can be influenced by liquidity, tracking differences, and market depth, which can lead to some funds showing bigger percentage moves than others on the same day.

Gold-loan financiers gain as collateral values rise

The rally was not limited to commodity-linked products. Shares of gold financiers such as Manappuram Finance, Muthoot Finance and IIFL Finance rose up to 8% in the session, as higher per-gram gold rates increase the value of gold jewellery held as security by lenders. Market commentary in the updates noted that gold NBFCs often grow their loan books primarily based on value rather than volume. In that framing, higher domestic gold prices can expand the overall value of assets under management (AUM) because the same pledged jewellery is worth more at prevailing prices.

A reminder from earlier volatility in gold-financier stocks

Other updates included examples showing how sensitive gold-loan financiers can be to sharp moves in bullion. In a separate instance during a special Budget 2026 trading session on Sunday, February 1, gold-loan financing shares were reported to have cracked up to 8% amid a fall in gold prices from record high levels. In that session, Muthoot Finance fell 7.6% to ₹3,538, Manappuram Finance fell over 6% to ₹267.40, and IIFL shed 4% to ₹507 in early trades. These references underscore that the relationship works both ways: rising gold can lift collateral values and sentiment, while sharp declines can pressure these stocks.

Key numbers at a glance

Market impact and what investors will watch next

The immediate market impact was a sharp repricing of domestic bullion, which fed into ETFs and gold-loan financiers in the same session. For ETF investors, the focus typically shifts to how quickly higher domestic prices stabilise after the duty change is absorbed by the market. For gold-loan companies, the key linkage highlighted in the updates is the change in collateral value, which can influence loan-to-value dynamics and the reported value of pledged gold.

The next set of signals will come from subsequent MCX price action and how ETF prices track the underlying metal after the initial spike. Investors will also watch for any further government measures aimed at managing precious metal imports and foreign exchange pressures, since the May 13 move was explicitly tied to that objective.