Gold and silver ETFs jumped up to 15% on Wednesday as prices of the precious metals opened sharply higher on the Multi-Commodity Exchange (MCX). The rally came after the central government raised customs duties on gold and silver imports, with the revised rates taking effect from midnight.
Among the 25 gold ETFs, Quantum Gold Fund led the surge, jumping nearly 15% to hit the day’s high of Rs 143.37 compared with the previous close of Rs 124.90. Tata Gold ETF rose 12%, while Zerodha Gold ETF gained around 9%.
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Three gold-based ETFs climbed 8% each, while the remaining 19 posted gains in the 4%–7% range on Wednesday.
Silver-based ETFs jumped up to 10%, with HDFC Silver ETF and UTI Silver ETF gaining the most. Around five silver ETFs gained upto 9% each, and the others rallied between 6% to 9%
Abhishek Bhilwaria, AMFI-registered MFD, told ETMutualFunds that retail investors should note that while high-flying consumer and jewellery stocks face corrections from macro spending checks, India's external economic buffers remain robust, making it crucial to avoid panic-selling into oversold territory.
Instead of attempting to time these steep macro-driven corrections, investors can leverage a Systematic Investment Plan (SIP) to turn this volatility into an advantage; by maintaining consistent recurring contributions, Bhilwaria further said.
In the domestic market, MCX silver futures for July 2026 delivery jumped Rs 16,743 or 6% to Rs 2,95,805 per kg. Gold futures for June 2026 delivery rallied Rs 9,206 or 6% Rs 1,62,648 per 10 grams. In the previous session, silver ended higher, while gold dropped marginally.
Following the revision, the total customs duty on gold and silver has been raised to 15% from 6% earlier. The government has imposed a 10% basic customs duty and a 5% Agriculture Infrastructure and Development Cess (AIDC) on gold and silver imports, taking the effective import tax to 15% from 6%.
In the international market, spot gold fell 0.4% to $4,695.99 per ounce, while U.S. gold futures for June delivery rose 0.4% to $4,705.30. Among other precious metals, spot silver rose 0.2% to $86.71 per ounce after touching its highest level since March 11 earlier in the session. Platinum declined 0.8% to $2,109.53, while palladium slipped 0.2% to $1,487.47.
Anup Bhaiya, Founder, Money Honey Wealth Services Ltd, told ETMutualFunds gold corrected modestly to around $4,670–$4,710 per ounce, while silver pulled back to $84–$86 amid profit-taking and a firmer dollar on Tuesday. For long-term investors, this healthy consolidation after recent gains creates an attractive accumulation window, supported by strong safe-haven demand, central bank buying, and ongoing macroeconomic uncertainties.
Manoj Kumar Jain of Prithvi Finmart advised traders holding long positions in both precious metals based on these recommendations to book profits near the target levels.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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