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Gold and silver prices in India continued their upward rally on May 13 as domestic bullion markets reacted strongly to the government’s decision to raise import duty on precious metals. Gold prices climbed for the third straight day, while silver extended gains for the second consecutive session, driven by higher import costs, global uncertainty, and increasing investor demand for safe-haven assets.

The recent decision to increase import tax on gold and silver from 6% to 15% has significantly impacted domestic prices. Along with rising tensions in West Asia and expensive crude oil prices, the duty hike has pushed bullion rates to record levels across Indian cities.

Market experts say the higher import cost is making gold and silver more expensive in the local market because India depends heavily on imports to meet domestic demand.

Gold Prices Continue Rising for Third Consecutive Day

Gold prices have witnessed a steady increase over the past three trading sessions. According to market trends, 24-carat gold prices have risen by nearly ₹1,640 per 10 grams during this period, while 22-carat gold has gained around ₹1,510.

In the national capital, 24-carat gold became costlier by ₹10 on Tuesday and was trading above ₹1.54 lakh per 10 grams. Similar upward movement was seen in most major cities across the country.

Commodity analysts believe the rise is mainly linked to the government’s decision to increase Basic Customs Duty and Agriculture Infrastructure and Development Cess (AIDC), taking the total import duty on precious metals to 15%.

Latest Gold Rates in 10 Major Indian Cities

Here are the latest approximate prices for 10 grams of gold in key Indian cities:

Among the listed cities, Chennai recorded the highest gold prices for all purity categories.

Silver Prices Jump Sharply Across Major Cities

Silver prices also remained on a strong upward trend after staying stable for several days earlier this week.

In just two sessions, silver prices reportedly increased by more than ₹15,000 per kilogram in several markets. Prior to that, silver had already witnessed a major rally over the previous trading sessions.

In Delhi, silver prices rose again and were trading near ₹2,90,100 per kilogram. Similar rates were seen in Mumbai and Kolkata, while Chennai recorded the highest silver price among major metro cities at around ₹3,00,100 per kilogram.

The rally in silver has attracted significant attention because the metal has been outperforming expectations in recent sessions.

Why Gold and Silver Prices Are Rising

Experts say several domestic and global factors are supporting the sharp rise in bullion prices.

1. Higher Import Duty

The biggest trigger has been the government’s decision to increase import duty on gold and silver from 6% to 15%. This has raised the landed cost of imported bullion and directly pushed up domestic prices.

2. Global Geopolitical Tensions

Rising tensions in West Asia, especially concerns linked to Iran and crude oil supply routes, have increased uncertainty in global financial markets. During such periods, investors often shift toward safer assets like gold and silver.

3. Weakening Rupee

Pressure on the Indian rupee against the US dollar has also contributed to higher bullion prices because precious metals are imported in foreign currency.

4. Rising Investor Demand

Many investors are turning toward gold and silver as protection against inflation and market volatility, increasing buying activity in both metals.

Silver Emerging as an Alternative to Gold

Industry experts believe silver demand could rise further in the coming months as many buyers now see it as a more affordable alternative to gold.

With gold prices trading near record highs, some consumers may shift their focus toward silver jewellery and investment products. Traders say this trend has already started becoming visible in the retail jewellery market.

Analysts expect bullion prices to remain volatile in the near term as investors continue monitoring global tensions, import policies, currency movement, and crude oil prices.

While rising prices may benefit investors holding precious metals, consumers planning jewellery purchases could face higher expenses during the wedding and festive season.