Metal stocks witnessed a sharp surge on Wednesday, 13 May, tracking a steep rise in gold, silver, and other base metals. Shares of Hindustan Zinc, Vedanta, Hindustan Copper, NALCO, and other metal counters rallied significantly during the session as a jump in commodity prices improved sentiment across the sector.
The rise in prices comes after the government has raised import duties on several categories of gold, silver, and other precious metal imports to 15% from 6%.
Nifty Metal soared 1.3% with all its constituents in the green. was the top gainer, surging almost 5%, followed by , which added over 3%. Meanwhile, , , and gained over 1.5% each.
Buying in precious metals intensified, and gold and hit 6% upper circuit each. rate was up by ₹9,206, or 6%, at ₹1,62,648 per 10 gram, while MCX silver price spiked by ₹16,743, or 6%, to ₹2,95,805 per kg.
Why Gold and Silver rates rose today?
In a major move to curb gold buying and support the rupee, the government has revised the import duty structure on precious metals by along with a 5% Agriculture Infrastructure and Development Cess (AIDC) on gold and silver imports, taking the total effective levy to 15%. The higher duties, which came into effect from May 13, 2026, are aimed at discouraging excessive imports of precious metals and reducing pressure on India’s foreign exchange reserves amid rising global uncertainties.
The revised tax structure applies not only to gold and silver but also to platinum, findings, and industrial imports linked to precious metals. The government has also raised import duties on gold imported from the United Arab Emirates under the fixed-quantity quota mechanism, which previously attracted concessional rates.
The move is expected to increase the landed cost of imported bullion, potentially pushing domestic prices higher. Analysts believe the decision could impact jewellery demand in the near term, particularly in price-sensitive segments of the market, while also encouraging the recycling and exchange of old jewellery.
The rise in silver prices has also brought attention to companies linked to silver production. Mining firms with exposure to silver may benefit if the ongoing rally in the metal sustains, as higher silver prices can significantly improve profitability when production costs remain relatively stable.
Globally, shares of silver mining companies often gain during bullion rallies because earnings tend to rise faster than operating expenses. In India, however, there are limited listed companies that offer pure exposure to silver mining, with most producers generating silver as a by-product of zinc, lead or copper mining operations.
The government’s decision comes at a time when geopolitical tensions in West Asia continue to remain elevated. Prime Minister Narendra Modi has urged citizens to adopt austerity measures, including delaying discretionary gold purchases and cutting down on foreign travel, as authorities attempt to shield the economy from the wider impact of the conflict.
India’s rising dependence on gold imports has increasingly become a concern for policymakers. surged more than 24% to a record USD 71.98 billion in 2025-26, compared with $58 billion in the previous financial year. Imports had stood at $45.54 billion in 2023-24 and $35 billion in 2022-23, highlighting the sharp increase in bullion demand over the past few years.
India remains the world’s second-largest gold consumer after China, with demand largely driven by the jewellery industry and household investments. Gold is widely viewed as a safe-haven asset during periods of uncertainty, which often leads to a surge in purchases when geopolitical or economic risks rise.
However, higher bullion imports have also widened pressure on India’s trade deficit and foreign exchange reserves, with gold accounting for more than 9% of the country’s total imports.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.