Gold and silver prices in India have climbed to record levels, creating fresh concerns for families preparing for the upcoming wedding season. The continuous rise in prices has made jewellery purchases significantly more expensive, forcing many buyers to rethink their spending plans.
Instead of purchasing brand-new ornaments, several families are now opting to melt old jewellery and redesign it into modern pieces to reduce costs. Jewellery traders say the sudden spike in rates has started affecting customer sentiment, especially among middle-class households planning weddings and festive shopping.
The sharp jump in prices came after the central government increased the import duty on gold and silver. Following the decision, the domestic bullion market witnessed a strong rally, with both precious metals recording historic gains.
Delhi market on Wednesday, gold prices surged by nearly ₹8,550 per 10 grams, while silver became costlier by around ₹20,500 per kilogram. According to market experts, the increase in import duty raised concerns over higher procurement costs for traders and investors, leading to an immediate spike in prices. As a result, 24-carat gold crossed the ₹1.60 lakh mark per 10 grams, while silver prices moved above ₹2.95 lakh per kilogram.
Central government has increased the import duty on gold and silver from 6 percent to 15 percent. Officials believe the move will help curb unnecessary imports and support efforts to control the widening trade deficit. Experts say the higher duty has made imported bullion significantly more expensive, and the impact is now clearly visible in domestic markets. Industry observers believe the decision could continue to influence pricing trends in the coming months.
The steep rise in precious metal prices is expected to impact both the jewellery business and investment markets. With wedding and festive demand approaching, rising rates could slow retail purchases and shift consumer preferences toward lightweight or lower-budget jewellery designs. At the same time, analysts believe gold and silver may continue to witness volatility due to global economic uncertainty and strong demand for safe-haven assets.
According to market watchers, rising geopolitical tensions in West Asia have also pushed global investors toward precious metals. In uncertain conditions, gold and silver are often considered safer investment options, which is helping keep prices elevated in international as well as domestic markets.
FAQs:
1. Why are gold and silver prices increasing in India?
Gold and silver prices are rising mainly because of the import duty hike, strong global demand, and geopolitical tensions.
2. What is the new import duty on gold and silver?
The central government has increased the import duty from 6% to 15%.
3. How much did gold prices increase recently?
Gold prices increased by nearly ₹8,550 per 10 grams in the Delhi bullion market.
4. Why are families redesigning old jewellery?
Many families are melting old jewellery and redesigning it to reduce costs during the wedding season.
5. Will gold and silver prices remain high in the future?
Experts believe gold and silver prices may remain volatile due to global uncertainty and continued demand for safe-haven assets.
