India's Gold Prices Surge Amid Global Decline in 2026

In May 2026 the international gold price fell about 1.4 % to $4,546 per ounce, yet India saw a 4.1 % rise in domestic gold prices. The increase is attributed to several India‑specific factors: the government raised the import duty on gold from 6 % to 15 % on 13 May, weakening the rupee against the dollar made imported gold more expensive, and heightened Middle‑East geopolitical tension boosted safe‑haven demand. As a result, gold delivered a 17.6 % return for Indian investors year‑to‑date, reinforcing its appeal as a secure asset. Earlier in June, strong U.S. employment data and a firm dollar caused a sharp drop in both gold and silver prices in Indian bullion markets, with gold falling 1,600‑1,850 rupees per 10 g and silver dropping to 4,000‑5,800 rupees per kilogram, but the later duty hike and currency weakness reversed the trend.

The contrasting movements highlight how global commodity trends can be offset by domestic policy and currency conditions, affecting retail investors and jewelers across major Indian cities such as Delhi, Mumbai, Kolkata, and Chennai.