Precious metals market faces paradox as tariff surge reshapes demand. Import duties on gold and silver have more than doubled to 15 percent, yet substantial discounts persist in the Indian domestic market. Gold trades at $200 per ounce below international rates, while silver discounts reach $6 per ounce. Banks and importers are offloading inventory acquired under the previous 6 percent duty regime, creating temporary pricing pressure. Gold imports plummeted to just 10-15 tonnes in April due to licensing delays and GST uncertainty. Industry analysts expect the higher tariffs will further dampen precious metals demand, accelerating consumer shift toward lighter-weight and lower-carat jewelry. The discount situation is expected to persist as the market adjusts to the new duty structure.
