Indian gold and silver markets experienced a significant upward surge on Wednesday, May 13, 2026, as exchange-traded funds (ETFs) and Multi Commodity Exchange (MCX) bullion prices reacted sharply to a government announcement. The Centre increased customs duties on precious metal imports to 15%, a move that immediately impacted domestic prices and investor sentiment.
Customs Duty Hike Triggers Market Reaction
The revised customs duty rates, which came into effect at midnight, were implemented to discourage the import of gold and silver. This policy shift aims to alleviate pressure on India’s import bill, which has been under strain due to elevated global commodity prices and ongoing geopolitical tensions in West Asia. As India heavily relies on imports to meet its bullion demand, the duty hike directly translated into higher local prices for both gold and silver.
Gold ETFs Witness Substantial Gains
Following the duty increase, gold ETFs recorded impressive gains, with some funds soaring by nearly 15%. Quantum Gold Fund emerged as the top performer, climbing close to 15% to reach an intraday high of Rs 143.37. Other notable gold ETFs also saw strong upward movement:
- Tata Gold ETF advanced approximately 12%.
- Zerodha Gold ETF rose nearly 9%.
- Nippon India ETF Gold BeES gained 5.69%.
- ICICI Prudential Gold ETF increased 5.74%.
- SBI Gold Exchange Traded Scheme moved up 5.74%.
- HDFC Gold ETF, Kotak Gold ETF, Axis Gold ETF, DSP Gold ETF, and Union Gold ETF all registered gains between 5% and 6%.
MCX Bullion Prices Spike
The rally in ETFs mirrored a massive spike in MCX bullion prices. Gold futures for June delivery surged by Rs 9,723, or 6.34%, to trade at Rs 1,63,165 per 10 grams. Similarly, silver futures for July delivery climbed by Rs 19,439, or 6.97%, nearing the Rs 3 lakh mark at Rs 2,98,501 per kilogram. Traders attributed this steep rise to the increased import duties, which significantly raised the landed cost of imported precious metals.
Silver ETFs Follow Suit
Silver ETFs also posted strong gains, reflecting the broader rally in silver prices:
- Tata Silver ETF climbed 5.47%.
- Nippon India Silver ETF gained 5.44%.
- Groww Silver ETF advanced 5.43%.
- Zerodha Silver ETF rose 5.11%.
- HDFC Silver ETF gained 5.54%.
- Other silver ETFs, including SBI Silver ETF, UTI Silver ETF, DSP Silver ETF, Edelweiss Silver ETF, and Mirae Asset Silver ETF, all rallied over 5%.
This widespread rally underscores robust investor interest in bullion-backed investment products amidst rising domestic precious metal prices.
Analyst Outlook on Gold and Silver
Market experts anticipate that the increase in customs duties will likely keep domestic bullion prices elevated in the near term. While higher prices could potentially impact jewellery demand, analysts believe that investor interest in gold and silver ETFs will remain strong. Precious metals continue to be regarded as safe-haven assets, especially during periods of global uncertainty, volatile financial markets, and geopolitical tensions.