Gold Prices Surge as Import Duty Rises to 15%: What Investors Should Know
What should you do with your gold investments as gold import duty increases to 15%?
The Economic Times
Image: The Economic Times
The Indian government has raised the import duty on gold from 6% to 15%, causing gold prices to spike significantly. Experts recommend existing investors hold onto their gold while advising new investors to adopt staggered buying strategies. The long-term outlook for gold remains positive despite short-term volatility.
- 01Import duty on gold increased from 6% to 15%, resulting in a significant price spike.
- 02Existing investors should hold gold as a hedge against inflation and uncertainty.
- 03New investors are advised to stagger purchases rather than buy all at once.
- 04Physical gold remains popular, but digital gold options like ETFs are recommended for efficiency.
- 05The long-term outlook for gold is positive, driven by cultural demand and economic factors.
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Following the Indian government's decision to raise the import duty on gold from 6% to 15%, gold prices surged significantly on May 13, 2026. The Multi Commodity Exchange of India (MCX) reported a price of ₹1,59,944 per 10 grams, an increase of ₹8,763 from the previous day. Experts like Prithviraj Kothari (managing director at RiddiSiddhi Bullions Ltd.) and Suvankar Sen (MD of Senco Gold) suggest that existing investors should hold their gold as a strategic hedge against inflation and global uncertainties. New investors are encouraged to adopt staggered buying strategies to avoid market peaks. While the import duty hike may lead to short-term price increases, the long-term value of gold remains intact, supported by strong cultural demand in India, particularly for weddings and savings. Analysts predict that the gold market will continue to be influenced by global economic conditions, interest rates, and geopolitical tensions, making gold a reliable asset for wealth preservation and diversification.
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The increase in import duty is likely to raise retail gold prices, affecting consumers' purchasing decisions. Existing and potential gold investors may need to adjust their strategies in response to these changes.
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