Gold prices took a dramatic leap on Wednesday following the central government's decision to hike customs duties on precious metal imports. The move comes as something of a surprise to the market, arriving just days after Prime Minister Narendra Modi publicly counselled citizens against purchasing gold. The impact was immediate: 24-carat gold soared by ₹9,338 to reach ₹16,285.8 per gram, while 22-carat gold rose to ₹14,917.793 per gram. Curiously, even with this massive single-day spike, bullion remains slightly cheaper than it was a month ago, with 24-carat prices still down about 0.75 per cent over the last four weeks.
Silver was not left behind in the rally, seeing an extraordinary jump of over ₹18,500 to settle at roughly ₹2,97,386 per kg. In the capital, the price for 10 grams of gold hit ₹1,62,858, a significant increase from Tuesday’s rate of ₹1,53,520. Chennai saw even steeper figures, with gold touching ₹1,64,357 and silver crossing the ₹3 lakh mark per kg. Similar upward trends were mirrored in Mumbai and Kolkata, where the financial and cultural hubs saw gold prices hover around the ₹1.63 lakh to ₹1.64 lakh range for 10 grams.
Bullish sentiments continue on the Multi Commodity Exchange (MCX). Gold futures for August 2026 were priced at ₹1,66,620 for every 10 gm, whereas silver futures for July 2026 had a price tag of ₹2,97,000 for every kg. There were minor gains registered in the prices of both these precious metals post a change in government policies.
As is typical for the Indian market, these prices aren't just dictated by local tax changes. While the new import duties provided the primary spark, the underlying rates continue to be buffeted by global economic shifts, the relative strength of the US dollar, and fluctuating interest rates. For now, the combination of tightened government policy and local demand appears to have set a high new floor for precious metals in the country.
Also read: Gold, silver jump as rupee slides to record low
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