Gold and Silver ETFs Surge Up to 15% After Government Hikes Import Duty on Precious Metals

Gold ETF and silver ETF experienced significant gains after the government announced an increase in import duties for these precious metals. The spike was mirrored on the Multi-Commodity Exchange of India. 

Impact of Increased Import Duty on ETFs 

The government's decision to raise import duties on gold and silver to 15% from the previous 6% has led to a notable rise in ETF prices.  

Following this announcement, Quantum Gold Fund rose by nearly 15%, while Tata Gold ETF and Zerodha Gold ETF also saw increases of 12% and 9%, respectively. 

This significant jump in ETFs was attributed to the heightened cost implications created by the new import taxes, which made existing stocks of gold and silver more valuable. 

Performance of Gold and Silver in Domestic Markets 

On the domestic front, MCX silver futures for July 2026 delivery increased by ₹16,743, reaching ₹2,95,805 per kg. Meanwhile, gold futures for June 2026 saw a rise of ₹9,206 per 10 grams, reaching ₹1,62,648.  

The revised import duties, comprising a 10% basic customs duty and a 5% Agriculture Infrastructure and Development Cess (AIDC), have effectively doubled the previous import tax rate. 

International Market Trends 

Globally, spot gold saw a slight dip of 0.4% to $4,695.99 per ounce, while U.S. gold futures for June increased by 0.4% to $4,705.30.  

Spot silver rose marginally by 0.2% to $86.71 per ounce, marking its highest level since March 11. In contrast, platinum and palladium experienced minor declines. 

Read More: Gold Industry Plans to Urge PM Modi to Revive Gold Monetisation Scheme After Appeal to Avoid Buying Gold! 

Analysis of Precious Metals ETF Surge 

The surge in gold and silver ETFs indicates robust investor interest in these metals, driven by safe-haven demand amidst macroeconomic uncertainties.  

The increased duty has intensified the appeal of existing holdings, reflecting broader market trends influenced by economic policies and global conditions. 

Conclusion 

The recent surge in gold and silver ETFs following the import duty increase highlights the impact of government policy changes on commodity markets. This development reflects ongoing trends in investor behaviour and market dynamics. 

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