Gold prices rallied by ₹9,723 to ₹1.63 lakh per 10 grams in futures trade on Wednesday (May 13, 2026), while silver soared 7% to approach the ₹3 lakh per kilogram mark after the government hiked import duties on precious metals to 15%.

The move is aimed at curbing precious metals imports amid a rising import bill due to the ongoing West Asia crisis.

On the Multi Commodity Exchange (MCX), gold futures for the June delivery appreciated by ₹9,723, or 6.34%, to ₹1,63,165 per 10 grams.

Silver prices also witnessed a sharp rally, with the most-traded July contract jumping by ₹19,439, or 6.97%, to ₹2,98,501 per kilogram on the MCX.

Traders said domestic bullion prices jumped following the increase in import duties.

The duty hike could moderate imports in the near term as the government looks to contain pressure on the current account deficit amid elevated crude oil prices and geopolitical tensions, they added.

The government on Wednesday hiked import duties on gold and silver to 15% from 6% as part of measures to curb inbound shipments of precious metals amid a rising import bill due to the West Asia crisis.

On Sunday, Prime Minister Narendra Modi made a clarion call for curbs on gold purchases, along with other austerity measures to save on foreign exchange. The Finance Ministry, in a notification, hiked the social welfare surcharge (SWS) and the agriculture infrastructure and development cess (AIDC), effective May 13.

The duty hikes will raise the overall customs duty on gold to 15 per cent.

India's gold imports surged more than 24 per cent to an all-time high of USD 71.98 billion in 2025-26. In volume terms, however, the shipments dipped 4.76 per cent to 721.03 tonnes in 2025-26.

In the international markets, however, gains remained comparatively moderate.

Comex gold futures for June delivery rose USD 21.40, or 0.46 per cent, to USD 4,708.10 per ounce, while silver advanced 2.12 per cent to USD 87.40 per ounce.

Market participants said the sharp rise in domestic prices compared to global markets reflected the immediate impact of the higher import duty on bullion imports.