Gold, Silver rate today: Silver prices surged on Wednesday, 13 May, as investors reacted to India’s decision to sharply increase import duties on precious metals, while global bullion markets remained supported by sticky US inflation data and ongoing geopolitical tensions in the Middle East. Gold prices also rallied.
Silver price on MCX hit its 6% upper circuit of ₹2,95,805 per kg, while gold was also at its 6% upper circuit of ₹1,62,648 per 10 grams.
Spot silver gained 1% to $87.40 per ounce, extending gains alongside gold, which remained firm near record levels. Spot gold stood at $4,713.39 per ounce as of 0100 GMT, while US gold futures for June delivery rose 0.7% to $4,721.80. Among other precious metals, platinum slipped 0.1% to $2,124.70, while palladium gained 0.4% to $1,497.
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Silver prices surged due to India’s decision to sharply increase import duties on precious metals from 6% to 15%. This move aims to curb overseas purchases and ease pressure on foreign exchange reserves, while global factors like sticky US inflation and Middle East tensions also support bullion prices.
The increased import duty to 15% is expected to dampen demand for precious metals in India and could help reduce the trade deficit and support the rupee. However, experts caution that higher duties might also encourage smuggling.
Sticky US inflation data and ongoing geopolitical tensions in the Middle East, particularly concerning Iran, increase demand for precious metals as safe-haven assets. This global support, combined with India’s import duty hike, is driving silver prices higher.
The government has raised import duties to 15% to curb overseas purchases of precious metals, ease pressure on foreign exchange reserves, and reduce the trade deficit. The strategy also aims to encourage the use and recycling of existing household gold.
Silver prices hit a 6% upper circuit of ₹2,95,805 per kg on MCX. Immediate resistance for MCX silver is seen at ₹2,84,000– ₹2,85,000, with potential to rally towards ₹2,87,000– ₹2,90,000 if breached. Downside support is at ₹2,77,000.
In a major move for the domestic bullion market, India raised import tariffs on gold and silver to 15% from 6%. The decision is aimed at curbing overseas purchases of precious metals and easing pressure on the country’s foreign exchange reserves. The move is expected to increase domestic bullion prices further and could influence buying trends in the jewellery market in the coming months.
The tariff hike came at a time when global bullion prices were already witnessing strong support from safe-haven demand. Investors have remained cautious amid uncertainty surrounding US monetary policy and escalating geopolitical tensions linked to the Iran conflict.
Fresh US inflation data also played a key role in supporting bullion prices. Data released recently showed that consumer inflation in the United States increased further in April, with the annual rate recording its largest rise in three years.
Headline inflation rose to 3.8% year-on-year amid higher energy prices. Following the data release, investors pushed back expectations of any Federal Reserve rate cut until after December 2027, while the yield on the benchmark 10-year US Treasury note climbed to 4.47%.
Moreover, US Treasury yields moved higher as investors sought compensation for holding bonds amid concerns that elevated energy prices could keep inflation sticky. Higher interest rates are generally viewed as negative for precious metals because gold and silver do not offer interest income. However, both metals have remained resilient despite rising yields, reflecting strong investor demand for safe-haven assets.
Apart from inflation concerns, geopolitical tensions have remained a major driver for precious metals. Investors are closely tracking developments surrounding Iran and the Strait of Hormuz, a key global oil shipping route.
The tensions have kept commodity markets volatile, particularly because any disruption to oil supply routes could worsen inflation pressures globally. Although oil prices slipped slightly on Wednesday after three consecutive sessions of gains, investors continued favouring bullion as a hedge against uncertainty.
Brent crude hovered near $107, with investors awaiting developments on the fragile ceasefire in the Iran war, while U.S. President Donald Trump headed to China for a high-stakes summit with President Xi Jinping.
Furthermore, US President Donald Trump said he did not think China’s help would be necessary to end the conflict involving Iran, even as hopes for a lasting peace agreement remained uncertain. Meanwhile, US Treasury Secretary Scott Bessent said discussions between Trump and Chinese President Xi Jinping could include the Iran conflict and shipping security concerns.
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