Check gold, silver rates in India today; know why import duty hike chatter rises ahead of Budget

Gold prices in India inched up by ₹1 per gram across all purity levels on Thursday. Twenty-four carat gold was priced at ₹16,709 per gram, compared with ₹16,708 a day earlier. At this rate, 8 grams of 24 carat gold cost ₹1,33,672, while 10 grams stood at ₹1,67,090. For bulk buyers, 100 grams was priced at ₹16,70,900, up ₹100 from the previous day.

Twenty-two carat gold followed a similar pattern. The price stood at ₹15,316 per gram, rising by ₹1 from Wednesday. Eight grams cost ₹1,22,528, 10 grams ₹1,53,160 and 100 grams ₹15,31,600, all reflecting small daily gains.

Eighteen carat gold, often preferred for lighter jewellery, was priced at ₹12,532 per gram, also up ₹1. Eight grams cost ₹1,00,256, 10 grams ₹1,25,320 and 100 grams ₹12,53,200.

City-wise, gold prices remained largely stable across major markets. Chennai continued to quote the highest rates, with 24 carat gold at ₹17,030 per gram, 22 carat at ₹15,611 and 18 carat at ₹13,026. Mumbai, Kolkata, Bengaluru, Hyderabad, Kerala and Pune all quoted 24 carat gold at ₹16,709 per gram, 22 carat at ₹15,316 and 18 carat at ₹12,532.

Delhi traded slightly higher, with 24 carat gold at ₹16,724 per gram, 22 carat at ₹15,331 and 18 carat at ₹12,547. Vadodara and Ahmedabad quoted 24 carat gold at ₹16,714 per gram, 22 carat at ₹15,321 and 18 carat at ₹12,537.

Silver prices edge higher amid strong demand

Silver prices in India also recorded a mild uptick. The metal was priced at ₹380.10 per gram, compared with ₹380 a day earlier, while the kilogram rate stood at ₹3,80,100, up ₹100.

At smaller quantities, silver cost ₹3,040.80 for 8 grams and ₹3,801 for 10 grams. One hundred grams was priced at ₹38,010, reflecting a ₹10 increase from Wednesday.

City-wise, Chennai, Hyderabad and Kerala continued to trade silver at a premium. In these markets, silver was priced at ₹4,001 for 10 grams, ₹40,010 for 100 grams and ₹4,00,100 per kilogram. Mumbai, Delhi, Kolkata, Bengaluru, Pune, Vadodara and Ahmedabad quoted silver at ₹3,801 for 10 grams, ₹38,010 for 100 grams and ₹3,80,100 per kilogram.

MCX benchmark trends

• MCX silver recently hit a record high of around ₹3,39,927 per kg.
• MCX gold climbed to about ₹1,59,226 per 10 grams in the past week, mirroring strong safe-haven demand.

Import surge and Budget duty speculation

India’s gold and silver imports surged to record levels last year. As the world’s second-largest gold consumer and biggest silver market, India depends heavily on overseas supplies — nearly all gold and more than 80 % of silver is imported. The sharp rise in import bills — consuming almost a tenth of foreign exchange reserves — has stoked concern among policymakers.

With both metals trading near historic levels, traders now expect the government to revisit import duties in the upcoming Union Budget on 1 February. In July 2024, duties on gold and silver were cut to 6 % from 15 % to curb smuggling. But with prices and import value swelling again, there’s growing chatter that duties could be hiked once more, as was done in 2012–13 when the rupee was under pressure.

Gold and silver already trade at a premium to global prices as markets price in that possibility. However, past attempts to temper demand through higher duties have had limited impact on overall consumption, even as they sometimes spur smuggling.

Global momentum meets local demand

Globally, precious metals remain in a strong bull phase. Silver has surged past $100 an ounce amid robust safe-haven and industrial demand, while gold pushed to new highs near $5,000 an ounce, driven by geopolitical uncertainty and macroeconomic shifts.

At home, gold jewellery demand has softened under high prices, but investment appetite — particularly in coins, bars and exchange-traded funds — has surged. Silver’s industrial importance, especially in solar and electronics, adds another layer to its appeal. Together, these factors have kept prices elevated as India heads into Budget week, with duty policy now a key focus for traders and investors alike.