Silver rises ₹12,900/kg this week; gold up ₹7,132 per 10 gm

Surge follows supply-side duty hike and volatile global cues; investors and consumers reassess purchases

New Delhi — Silver prices climbed sharply this week, with 1 kilogram gaining ₹12,900 to trade at ₹2.69 lakh, market data and local dealers said on Saturday. Gold also firmed: 10 grams rose by ₹7,132 from last Friday’s close to ₹1.58 lakh.

Prices and timing
According to local bullion dealers and exchange quotes, silver was at about ₹2.56 lakh per kg on May 9 and moved to around ₹2.69 lakh by May 16. Ten grams of gold, which stood at approximately ₹1.51 lakh on May 9, is now trading near ₹1.58 lakh in national markets this morning.

Dealers in Mumbai’s Zaveri Bazaar and jewellery hubs in Delhi and Hyderabad attributed the uptick to recent policy changes and renewed global demand for safe-haven metals. “The import duty revision has tightened domestic availability and traders are passing on higher landed costs,” a Mumbai-based wholesaler said, requesting anonymity.

Policy driver: higher import duties
A key domestic factor is the central government’s change to import levies on gold and silver. Customs duty on gold and silver imports has been raised from 6% to 15%, made up of a 10% basic customs duty and a 5% Agriculture Infrastructure and Development Cess (AIDC), officials confirmed earlier this month.

Analysts say the duty increase raised the landed cost of bullion immediately for refiners and importers, tightening near-term supply and nudging local prices upward. “When policy alters the cost of bringing metals into the country, the market adjusts quickly,” said a senior analyst at a Mumbai brokerage.

Year-to-date movement
The rally is part of a broader run-up in metals so far this year. On December 31, 2025, 10 gm of gold was near ₹1.33 lakh; by mid-May 2026 it had reached roughly ₹1.58 lakh, marking about a ₹25,015 increase in 2026. Silver moved from roughly ₹2.30 lakh per kg at year-end to about ₹2.69 lakh now, an increase near ₹38,080.

The market saw volatility earlier in the year: gold hit an all-time intraday high of about ₹1.76 lakh per 10 gm on January 29, while silver recorded a peak near ₹3.86 lakh per kg during the same period. Prices have since oscillated on changing global cues, domestic demand and policy moves.

Global and market context
Global bullion markets and the dollar’s trajectory continue to influence Indian prices. A softer dollar and concerns over slower growth in parts of the world can lift bullion demand. Conversely, expectations of firmer interest rates generally weigh on non-yielding metals.

Local demand patterns are mixed. Wedding and festival buying in some regions has sustained baseline demand for jewellery, while investment demand in coins and bars rises when volatility or geopolitical tensions spike. Dealers noted stronger enquiries this week from small investors and households comparing prices before purchases.

Consumer guidance
As prices shift, jewellers and trade bodies stress due diligence for buyers. The Bureau of Indian Standards (BIS) hallmark remains the primary protection: certified gold should carry a BIS hallmark code that indicates purity. Consumers should also cross-check live rates — the India Bullion and Jewellers Association (IBJA) and other exchanges publish daily benchmarks — and verify weight and making charges before transacting.

Impact and outlook
The immediate impact is likely to be higher retail gold and silver bills for consumers planning purchases in the near term. For jewellers, higher import duty increases working capital pressures for businesses that rely on imported bullion.

Looking ahead, market participants say the next direction will depend on a mix of global rates, currency moves and any further policy tweaks. “If duties stay elevated and global demand firm, prices could consolidate at higher levels,” a dealer in Delhi said. “If dollar strength returns or demand softens, we may see some correction.”

Markets will watch central bank signals and trade flows closely in the coming weeks as buyers and investors weigh whether to delay purchases or lock in holdings now.