Gold and silver prices are experiencing significant volatility after India increased import duties on precious metals from 6% to 15%. This policy change initially pushed domestic futures to record highs before a sharp correction occurred due to profit-booking. The government's move aims to curb imports and support the rupee.
Gold, Silver Prices Stay Volatile After Import Duty Shock
Gold and silver prices witnessed sharp swings in domestic and international markets on May 16 as traders reacted to India’s recent hike in import duties on precious metals. The volatility comes days after the government increased import tariffs on gold and silver from 6% to 15% in an effort to curb imports and support the rupee.
The sudden tariff revision triggered massive movement in the bullion market, pushing MCX gold and silver futures to record highs earlier this week before profit-booking and weak global sentiment dragged prices lower. Analysts say the market remains highly sensitive to geopolitical tensions, inflation concerns and fluctuations in the US dollar.
MCX Gold, Silver Witness Sharp Corrections
After rallying strongly earlier this week, precious metals faced intense selling pressure on Friday. MCX gold futures slipped nearly 2%, while silver prices saw a steeper correction of more than 7% during intraday trade.
According to market data, MCX gold touched an intraday low of ₹1,58,150 per 10 grams, while silver dropped to around ₹2,68,623 per kilogram. Despite the correction, bullion prices continue to remain significantly higher compared to last month’s levels.
Earlier in the week, MCX gold June futures had surged over 6% after the government doubled import duties on gold, silver and platinum. Silver futures had also jumped sharply past the ₹2.95 lakh mark per kilogram.
Why Gold, Silver Prices Are Fluctuating
Experts believe multiple factors are driving the current volatility in bullion prices.
Key Reasons Behind Market Swings
- Factor Impact on Bullion Market
- Import duty hike to 15% Increased domestic prices
- Weak rupee Boosted landed cost of imports
- Global inflation fears Raised safe-haven demand
- US Treasury yield rise Pressured gold internationally
- Profit booking Triggered sharp corrections
Reuters reported that Indian dealers are now offering record discounts on gold due to reduced demand after prices surged following the tariff hike.
Today 24 Carat Gold Rate Per Gram in India (INR)
| Weight | Today Price | Yesterday Price |
| 1 Gram | ₹16,009 | ₹16,233 |
| 8 Grams | ₹1,28,072 | ₹1,29,864 |
| 10 Grams | ₹1,60,090 | ₹1,62,330 |
| 100 Grams | ₹16,00,900 | ₹16,23,300 |
Today 22 Carat Gold Rate Per Gram in India (INR)
| Weight | Today Price | Yesterday Price |
| 1 Gram | ₹14,675 | ₹14,880 |
| 8 Grams | ₹1,17,400 | ₹1,19,040 |
| 10 Grams | ₹1,46,750 | ₹1,48,800 |
| 100 Grams | ₹14,67,500 | ₹14,88,000 |
Today 18 Carat Gold Rate Per Gram in India (INR)
| Weight | Today Price | Yesterday Price |
| 1 Gram | ₹12,007 | ₹12,175 |
| 8 Grams | ₹96,056 | ₹97,400 |
| 10 Grams | ₹1,20,070 | ₹1,21,750 |
| 100 Grams | ₹12,00,700 | ₹12,17,500 |
Silver Rate Today in India
Weight Silver Price
- 1 Kg Silver Around ₹2.70 lakh
- MCX Silver Futures Highly Volatile
Gold Prices in Major Indian Cities
| City | 22K Gold (per gm) | 24K Gold (per gm) |
| Mumbai | ₹14,675 | ₹16,009 |
| Delhi | ₹14,690 | ₹16,024 |
| Kolkata | ₹14,675 | ₹16,009 |
| Chennai | ₹14,950 | ₹16,309 |
| Bengaluru | ₹14,675 | ₹16,009 |
| Hyderabad | ₹14,675 | ₹16,009 |
Why Gold Prices Are Fluctuating
The bullion market has remained unstable after the government increased import duties on gold and silver to 15 percent. Traders are also tracking global inflation trends, US Treasury yields, rupee movement and international demand for safe-haven assets. Analysts believe profit-booking after recent record highs has also triggered sharp corrections in MCX gold and silver futures.
