Gold price jumps 6% as India hikes duty to 15% (May 13)

Import duty shock triggers a sharp bullion rally

Gold and silver prices in India surged on May 13 after the Centre raised import duties on precious metals in a midnight policy move. The duty increase came through a finance ministry notification and took effect immediately. Market participants linked the early spike in domestic prices to the higher landed cost of imported bullion. The move also coincided with heightened geopolitical risk, with updates citing a US-Iran setback and elevated oil prices. Futures on the Multi-Commodity Exchange (MCX) responded quickly, with both gold and silver posting single-session gains of more than 6% in early trade. International prices were also firm, although the jump in domestic contracts was sharper.

What exactly changed: customs duty and AIDC

According to the notification referenced in market updates, India raised import duties on gold, silver, and other precious metals to 15% from 6%. The revised structure includes a 10% basic customs duty and an additional 5% Agriculture Infrastructure and Development Cess (AIDC) on gold and silver imports. Updates also noted a change for platinum, with import duty increased to 15.4% from 6.4%. The policy was described as an attempt to curb imports and ease pressure on foreign exchange reserves, with some coverage also pointing to rupee weakness. Since India imports a large share of its bullion requirement, changes to import taxes tend to transmit quickly into futures and retail quotes. The immediate effect was visible in MCX price action and in city-wise rate cards published alongside the updates.

MCX gold jumps above Rs 1.62 lakh per 10 grams

Gold futures recorded a steep move as traders repriced the domestic market after the tax change. MCX gold for June delivery was reported up 6.46% at Rs 1,63,360 per 10 grams in early trade versus the previous close. In another early update, gold futures were reported up Rs 9,206, or about 6%, to Rs 1,62,648 per 10 grams. Around 10 am, the June 5 contract was cited near Rs 1,62,727, up about 6% or Rs 9,260. Separately, one update put the intraday high at Rs 1,64,497 per 10 grams versus a previous close of Rs 1,53,442, implying a rise of Rs 11,055 at the peak. At the time of writing in one feed, MCX gold was reported at Rs 1,62,528 per 10 grams, up Rs 9,086 or 5.92%.

Silver reclaims the Rs 3 lakh mark in futures and retail updates

Silver futures also rallied strongly, with multiple snapshots showing the contract near the Rs 3 lakh level per kilogram. MCX silver for July was reported up 7.25% at Rs 2,99,283 per kilogram in early trade. As of 9 am in another update, silver futures were cited at Rs 2,95,805 per kg, up Rs 16,743, or about 6%. Another feed reported the July futures at Rs 2,97,376, up 6.56% or Rs 18,314, around 10 am. A separate intraday update stated MCX silver climbed by Rs 22,367 to an intraday high of Rs 3,01,429 per kg versus Rs 2,79,062 the previous day. At the time of writing in that sequence, silver was reported at Rs 2,96,743 per kg, up Rs 17,681 or 6.34%.

Global cues: spot gold near $1,710-$1,713 per ounce

International bullion prices were also higher in early trade, though the gains cited were smaller than MCX moves. Spot gold was reported up 0.50% at $1,710.20 per ounce in early Comex trade. Another update said spot gold was largely unchanged at $1,713.39 per ounce at 0100 GMT, while US gold futures for June delivery advanced 0.7% to $1,721.80. Spot silver was reported up 2.29% at $17.55 per ounce in early trade in one feed, while another noted spot silver up 0.2% at $16.71. Coverage attributed the broader support to geopolitical uncertainty and elevated oil prices.

City-wise retail rates show higher gold quotes

Retail rate cards published alongside the market move showed higher gold prices across major cities. For example, 24K gold (10g) was listed at ₹1,56,340 in Chennai and ₹1,54,140 in Delhi. Mumbai, Bangalore, Hyderabad, Kolkata, Kerala, and Pune were each listed at ₹1,53,990 for 24K gold (10g) in the provided city table. In the same table, 22K gold (10g) was listed at ₹1,43,310 for Chennai and ₹1,41,310 for Delhi, while Mumbai and several other cities were listed at ₹1,41,160. These city rates were presented as part of the day’s sharp repricing following the duty hike.

Key numbers at a glance

Why the policy move mattered to markets

The duty increase was described as part of measures to curb inbound shipments of precious metals and reduce pressure on foreign exchange reserves. Some coverage also pointed to the rupee being under pressure, adding urgency to curbs on discretionary imports. Because import duties directly affect the landed cost of bullion, domestic futures and retail quotes can react quickly, even if global spot prices move modestly. The size of the one-day move in MCX contracts reflected both the tax change and broader risk sentiment tied to West Asia developments. Market updates also noted elevated oil prices as an additional macro factor supporting safe-haven demand.

What investors and buyers are watching next

In the near term, traders will track how quickly the new duty structure transmits into physical premiums and jewellery pricing. Market participants will also monitor global bullion cues, including Comex pricing and geopolitical headlines that were already in focus on May 13. For domestic buyers, the key practical change is that the import tax structure has been raised immediately, which can influence retail quotes across cities. Futures markets may continue to react to updates on policy implementation and to any shifts in global risk sentiment that were cited as supportive on the day.

Conclusion

Gold and silver saw a sharp repricing on May 13 as India raised import duty on the two metals to 15% from 6% with immediate effect. MCX gold traded above Rs 1.62 lakh per 10 grams in early updates, while MCX silver moved back near the Rs 3 lakh per kg mark, with an intraday print above Rs 3.01 lakh reported. International bullion prices were steadier but positive, keeping sentiment supportive alongside geopolitical uncertainty and elevated oil prices. The next set of signals for the market will come from how physical demand adjusts to higher import costs and how global bullion prices respond to ongoing macro and geopolitical developments.