The Indian government has revised import duties on gold and silver, raising the basic import duty on both metals from 5% to 10%, and increasing the Agriculture Infrastructure and Development Cess on their imports from 1% to 5%.

Analysis and Commentary

Gold

As a major global consumer of gold, India’s recent substantial hike in the comprehensive import tariff on gold will significantly increase the cost of gold imports into the country and dampen domestic demand. Consequently, global gold consumption is expected to decline, creating a bearish outlook for gold prices. On May 12, 2026, the benchmark SHFE Gold 2606 contract closed at 1,030.12 RMB/g—an increase of 4.2 RMB/g—while open interest decreased by 6,146 lots, signaling that long positions have begun to exit the market.

Silver

India's decision to raise import tariffs on silver is expected to dampen the country's demand for silver imports. However, given silver's strong industrial characteristics, consumer-side demand is less sensitive to tariff changes compared to gold; consequently, this development poses only a minor bearish factor for silver prices. On May 12, 2026, the benchmark SHFE Silver 2608 contract closed at 20,817 RMB/kg—an increase of 1,185 RMB/kg—while open interest rose by 9,914 lots, indicating a bullish bias in the short-term trend.

SunSirs has been continuously tracking price data for over 200 commodities for nearly 20 years, please contact support@sunsirs.com for subscription.