Business
oi-Madhuri Adnal
Gold prices in Bangalore witnessed a massive rally on May 13 after the Centre increased import duties on gold and silver from 6% to 15%, triggering sharp movements across bullion markets in India. The sudden jump comes amid growing concerns over India’s rising import bill and ongoing geopolitical tensions linked to the Middle East crisis.
On May 13, Bangalore gold prices rallied sharply after the Centre increased import duties on gold and silver from 6% to 15%. This resulted in significant price jumps for 24-carat, 22-carat, and 18-carat gold, as well as silver, across various weights in the city.
The steep rise pushed 24-carat gold prices in Bangalore significantly higher across all major weight categories, with the biggest shock seen in bulk purchases. According to the latest market data, 100 grams of 24-carat gold surged by Rs 1,39,100 in a single day to reach Rs 16,78,900, compared to Rs 15,39,800 on the previous trading day.
The price of 10 grams of 24-carat gold in Bangalore climbed to Rs 1,67,890, recording a jump of Rs 13,910 from Tuesday’s levels. Even one gram of 24-carat gold rose sharply to Rs 16,789, reflecting the broader volatility in precious metal markets after the government’s latest move.
Jewellery buyers were also impacted as 22-carat gold prices registered a steep increase in Bangalore. The price of 10 grams of 22-carat gold rose to Rs 1,53,900, up by Rs 12,750 in just one day. Meanwhile, 100 grams of 22-carat gold climbed to Rs 15,39,000 from Rs 14,11,500.
The rally was visible across all gold categories, including 18-carat gold, which is commonly used for diamond jewellery and modern ornaments. The rate for 10 grams of 18-carat gold in Bangalore increased to Rs 1,25,920, marking a sharp rise of Rs 10,430 compared to the previous session.
The sudden spike follows the Finance Ministry’s decision to raise the Social Welfare Surcharge (SWS) and Agriculture Infrastructure and Development Cess (AIDC) on gold and silver imports. The revised rates came into effect on May 13 as part of measures aimed at curbing imports of precious metals and protecting India’s foreign exchange reserves.
The move came days after Prime Minister Narendra Modi called for restraint in gold purchases and highlighted the need for austerity measures amid rising global uncertainty.
Traders in Bangalore said the sudden rise in prices led to increased market activity, especially among investors tracking bullion as a safe-haven asset. However, jewellery buyers preparing for weddings and upcoming occasions may now face significantly higher purchase costs if the rally continues.
Silver prices in Bangalore also recorded a sharp rise on May 13, reflecting the broader rally in precious metals after the government increased import duties. The price of 1 gram of silver climbed to Rs 310 from Rs 290, registering an increase of Rs 20. Meanwhile, 8 grams of silver rose to Rs 2,480, up by Rs 160 compared to the previous day. The rate for 10 grams increased to Rs 3,100 from Rs 2,900, marking a jump of Rs 200. Bulk silver prices also witnessed a major surge, with 100 grams climbing to Rs 31,000 from Rs 29,000, while 1 kilogram of silver jumped sharply by Rs 20,000 to reach Rs 3,10,000.
