Gold Import Duty Hike: The Government of India has increased the import duty on gold and silver from 6 percent to 15 percent. The objective is clear to reduce imports and reduce pressure on the rupee. Prime Minister Narendra Modi himself has appealed to the people not to buy gold for a year. Despite this, the price of gold did not stop in the market.

Today, on May 13, 2026, the price of gold in India opened with a big jump. On MCX, gold today jumped 6 percent to Rs 1,62,390 per 10 grams. It also crossed Rs 1.64 lakh in intraday.

Now the question is that when the government wants to stop the purchase and there are less buyers then why is the price going up? There is not one answer to this but many.

First reason- Effect of Iran-America war

Whenever there is a major crisis in the world, investors rush towards gold. Gold is considered a safe investment. Amid tensions in West Asia, the price of gold in the global market is higher than before. India imports almost all its gold, so the outside price directly affects it.

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Second reason- increase in import duty itself

The government increased the duty so that gold becomes expensive and people buy less, but the opposite also happens. When duty increases, the price of gold goes up further in the domestic market. The profits of investors who have already purchased gold increase. This also attracts new investors so that they are not left behind.

Third reason- investment demand at record level

This year, for the first time in the March quarter, the demand for investment in gold surpassed the demand for jewellery. Investment in gold ETFs jumped 186 percent in a year to a record of 20 metric tons. Amid weak returns from the stock market, people chose gold.

Fourth reason- Mentality of Indian buyer

In the last decade, the price of gold increased by 443 percent, yet the annual demand remained between 666 to 803 metric tons. Even in 2012-13, when the duty was increased from 2 to 10 percent, the demand did not break. In rural India, gold is a means of savings and a guarantee of loans. It is not given up easily.

This is the reason why the price is not falling despite there being less buyers. The global crisis, rising import duties, changing investment priorities and the structure of the Indian market together are keeping gold up.

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