Gold Prices Jump Sharply After Import Duty Hike; Rates Surge From Delhi to Chennai, Silver Also Climbs

Gold prices witnessed another major jump across India on May 14 after the government sharply increased import duty on gold and silver. The latest policy change has triggered strong movement in the bullion market, pushing precious metal prices significantly higher in major cities including Delhi, Mumbai, Chennai, Kolkata, and Hyderabad.

According to market data, the increase in import duty, combined with a weakening Indian rupee and strong international bullion prices, has intensified the rally in domestic gold and silver rates.

Gold Prices Rise Across Major Indian Cities

In the national capital Delhi, the price of 24-carat gold climbed to nearly ₹1,62,160 per 10 grams on Thursday morning, while 22-carat gold reached around ₹1,48,660 per 10 grams.

Mumbai and Kolkata also witnessed strong gains, with:

• 24-carat gold trading near ₹1,62,010 per 10 grams
• 22-carat gold priced around ₹1,48,510 per 10 grams

Chennai recorded some of the highest prices in the country, where:

• 24-carat gold touched approximately ₹1,63,680 per 10 grams
• 22-carat gold rose to nearly ₹1,50,010 per 10 grams

Gold prices in Bengaluru and Pune remained similar to Mumbai levels, reflecting the broader nationwide trend in bullion markets.

Government Raises Import Duty on Gold and Silver

The biggest reason behind the latest rally is the government’s decision to sharply raise import duty on precious metals.

The revised duty structure includes:

• Gold and silver import duty increased from 6% to 15%
• Platinum import duty increased from 6.4% to 15.4%

The new rates officially came into effect from May 13, 2026.

Apart from bullion, revised tax structures have also been applied on:

• Gold and silver bars
• Coins
• Dore bars
• Other precious metal products

Since India imports a large portion of its gold and silver requirements, higher import duties immediately increase domestic prices.

Weak Rupee Adds Further Pressure

Another major factor driving the rally is the weakening Indian rupee.

On Wednesday, the rupee reportedly slipped to a record low of nearly 95.80 against the US dollar before closing around 95.66 per dollar.

A weaker rupee makes imported commodities like gold and silver more expensive for Indian buyers because imports are largely priced in dollars.

Massive Rally Seen in Bullion Market

Following the import duty hike, bullion prices surged sharply in wholesale markets as well.

In Delhi’s bullion market:

• 99.9% pure gold reportedly jumped by ₹8,550
• Prices crossed ₹1,65,350 per 10 grams

Internationally, spot gold was trading around:

• $4,700.86 per ounce

Silver prices also witnessed strong gains.

Silver Prices Continue Climbing

On May 14:

• Silver prices reached nearly ₹3,10,100 per kilogram nationally

A day earlier, silver in Delhi’s bullion market reportedly surged by:

• ₹20,500 in a single session
• Touching around ₹2,97,500 per kilogram

International spot silver prices were trading near:

• $87.45 per ounce

Analysts say silver is benefiting not only from investment demand but also from industrial demand linked to electronics, solar panels, and electric vehicle manufacturing.

Gold Rates in Major Cities on May 14, 2026

Will Gold Prices Fall Again?

Experts believe the latest import duty hike may continue pushing domestic gold prices higher in the near term, though it could temporarily affect physical jewellery demand.

Industry bodies and jewellery associations argue that increasing import duty does not necessarily reduce gold imports effectively. Instead, they believe it mainly raises domestic prices for consumers.

Some market experts suggest that controlling import volumes rather than sharply increasing taxes may be a more effective strategy for reducing pressure on India’s current account deficit.

Why Demand May Still Remain Strong

Despite higher prices, analysts do not expect Indian demand for gold to disappear completely.

Gold continues to play an important role in:

• Weddings
• Festivals
• Family savings
• Inflation protection
• Investment diversification

Interestingly, during the March quarter, investment demand for gold reportedly exceeded jewellery demand for the first time, reflecting growing investor preference for safe-haven assets amid stock market volatility and economic uncertainty.

As both domestic and global factors continue influencing bullion prices, experts expect gold and silver markets to remain highly volatile in the coming months.