India gold and silver prices stay steady after duty hike

Gold and silver prices in India remained largely stable with only minor fluctuations across major cities over the weekend, despite global market uncertainty and a recent significant increase in import duties. The domestic bullion market exhibited calm as traders and investors adopted a cautious stance.

In the retail market, prices for 24-carat gold were observed around 15,905 to 15,954 rupees per gram, while 22-carat gold traded near 14,579 to 14,626 rupees per gram. Silver prices hovered between approximately 2,84,900 and 2,85,000 rupees per kilogram. Prices varied slightly between cities such as Delhi, Mumbai, Kolkata, and Chennai due to factors including local taxes and jewellers' margins.

This stability follows a government decision on May 13 to more than double the import duty on gold, silver, and platinum to 15 percent from 6 percent, a move intended to discourage shipments and control foreign exchange outflow. Analysts note the duty hike has resulted in domestic gold prices trading at a discount to official landed prices, with discounts widening significantly since the policy change. Market observers attribute this discount to bullion dealers offloading inventory that was...