What triggered the sharp rally in gold and silver ETFs and MCX bullion prices?

Gold and silver exchange-traded funds (ETFs) witnessed a sharp rally on Wednesday after the Centre increased customs duties on imports of precious metals to 15%, triggering a steep rise in domestic bullion prices on the Multi Commodity Exchange (MCX).

The revised customs duty rates came into effect from midnight, leading to a strong surge in gold and silver futures as well as bullion-linked ETFs. Analysts said the move was aimed at discouraging imports of precious metals at a time when India’s import bill is under pressure due to elevated global commodity prices and geopolitical tensions in West Asia.

Gold ETFs

Among gold ETFs, Quantum Gold Fund emerged as the top gainer during the session, soaring nearly 15% to touch an intraday high of Rs 143.37 against its previous closing price of Rs 124.90. Tata Gold ETF climbed around 12%, while Zerodha Gold ETF advanced nearly 9%.

Several other gold ETFs also traded firmly in the green. Nippon India ETF Gold BeES gained 5.69% to Rs 131.70, ICICI Prudential Gold ETF rose 5.74% to Rs 136.40, while SBI Gold Exchange Traded Scheme advanced 5.74% to Rs 135.66.

HDFC Gold ETF, Kotak Gold ETF, Axis Gold ETF, DSP Gold ETF and Union Gold ETF also registered gains ranging between 5% and 6%. Union Gold ETF emerged among the top performers with a 6.41% rise, while Axis Gold ETF climbed nearly 6%.

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MCX gold, silver prices

The sharp rally in ETFs followed a massive spike in MCX bullion prices. Gold futures for June delivery surged by Rs 9,723, or 6.34%, to Rs 1,63,165 per 10 grams. Silver futures for July delivery climbed Rs 19,439, or 6.97%, to Rs 2,98,501 per kilogram, moving close to the Rs 3 lakh mark.

According to traders, the steep rise in domestic bullion prices was largely driven by the increase in import duties, which significantly raised the landed cost of imported gold and silver. Since India depends heavily on imports to meet bullion demand, any increase in customs duties directly impacts local prices.

On Wednesday, Gold June 2026 futures on MCX were trading at Rs 1,62,733 per 10 grams, up 6.06%, while Silver July 2026 futures rose 6.32% to Rs 2,96,700 per kilogram.

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Silver ETFs

Silver ETFs also posted strong gains in line with the rally in silver prices. Tata Silver ETF climbed 5.47% to Rs 26.98, while Nippon India Silver ETF gained 5.44% to Rs 265.73.

Groww Silver ETF advanced 5.43%, Zerodha Silver ETF rose 5.11%, and HDFC Silver ETF gained 5.54%. Other silver ETFs, including SBI Silver ETF, UTI Silver ETF, DSP Silver ETF, Edelweiss Silver ETF and Mirae Asset Silver ETF, also rallied more than 5% during the session.

The broad-based rally reflected strong investor interest in bullion-backed investment products amid rising domestic precious metal prices.

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International bullion

International bullion markets also remained positive during the session. Comex Gold futures traded 0.43% higher at 4706.9 US cents per troy ounce, while Comex Silver futures rose 1.76% to 87.100 US cents per troy ounce.

Base metals traded higher as well. Copper May 2026 futures gained 0.98%, while Zinc May 2026 futures rose 0.37% on MCX.

What analysts expect

Market experts said the increase in customs duties could keep domestic bullion prices elevated in the near term. Higher import duties tend to reduce imports by making precious metals more expensive in the domestic market.

While elevated prices may impact jewellery demand, analysts believe investor interest in gold and silver ETFs could remain strong as precious metals continue to be viewed as safe-haven assets amid global uncertainty, volatile financial markets and geopolitical tensions.