Gold, Silver Rate Today Live Updates: International gold prices edged down on Wednesday as escalating tensions in the Middle East lifted crude oil prices, reinforcing concerns that inflationary pressures could persist and keep interest rates elevated for a longer period. Spot gold slipped 0.2% to $4,476.50 per ounce, while US gold futures for August delivery declined 0.3% to $4,504.40 per ounce.
Fresh geopolitical tensions emerged in the Gulf after the US military said Iranian missile attacks targeting Bahrain, Kuwait and other locations in the region were either intercepted or failed to reach their objectives. The developments highlighted the lack of progress in diplomatic efforts between Washington and Tehran.
Domestic Gold and Silver Prices Recover
Gold prices recovered sharply in the national capital on Tuesday, crossing the Rs 1.61 lakh mark per 10 grams, as softer crude oil prices and a weaker US dollar renewed buying interest in the precious metal. According to the All India Sarafa Association, gold of 99.9% purity rose by Rs 1,050 to Rs 1,61,450 per 10 grams, inclusive of taxes. The metal had settled at Rs 1,60,400 per 10 grams in the previous session.
Silver also posted gains, advancing Rs 1,300 to Rs 2,71,000 per kilogram from Monday's closing level of Rs 2,69,700 per kg.
Crude Oil Prices Rise
Crude oil prices rose more than 1% in early trade, intensifying concerns that higher energy costs could fuel inflation and potentially lead to tighter monetary policy. Investors are closely tracking upcoming US labour market data, including the nonfarm payrolls report due later in the day and the broader employment report scheduled for Friday, for clues on the Federal Reserve's next policy moves.
Swiss customs data released on Tuesday showed that Switzerland's gold exports fell 20% in April compared with the previous month. Lower shipments to Britain and China more than offset increased exports to India and Hong Kong.
Silver Import Rules Tightened
The government has tightened rules governing silver imports, requiring all incoming shipments of the metal to be channelled through RBI-designated agencies, entities approved by the Directorate General of Foreign Trade (DGFT), and eligible jewellers authorised by the International Financial Services Centres Authority (IFSCA) through the India International Bullion Exchange (IIBX). Such imports will now require a valid authorisation issued by the DGFT.
The move comes as authorities continue efforts to curb non-essential imports amid the ongoing West Asia crisis. Last month, import duties on both gold and silver were increased to 15%. Meanwhile, silver imports surged 157% year-on-year in April, reaching $411 million.
In a notification issued on Tuesday, the DGFT clarified that imports of silver—including silver plated with gold or platinum—in unwrought, semi-manufactured, powder or grain form, as well as silver containing 99.9% or higher purity by weight, will be permitted only against a valid import licence. This condition applies to imports made through RBI-notified agencies in the case of banks, DGFT-approved agencies in other cases, and qualified jewellers authorised by the IFSCA for transactions routed through the IIBX wherever permitted.
India sources a substantial portion of its silver imports from the UAE, the UK and China, which remain the country's leading suppliers of the precious metal.
Smuggling on the Rise?
Surendra Mehta, National Secretary of the India Bullion & Jewellers Association, said a significant portion of undeclared gold is being carried by travellers arriving from Gulf countries. In many cases, passengers bring the metal into the country by wearing it and then pass through airport green channels without declaring it to customs authorities.
On the domestic front, the recent increase in import duties has begun to fuel a rise in gold smuggling, with industry participants and market observers reporting a growing flow of the precious metal into India through unofficial routes, particularly from the Middle East. According to traders, gold brought into the country outside formal channels is currently available at a discount of roughly Rs 8-10 lakh per kilogram compared with prevailing domestic market prices.
Industry experts warn that the situation bears similarities to developments seen after a comparable increase in import duties in 2013. According to the World Gold Council, unofficial gold inflows surged nearly sevenfold within a year following that duty hike, raising concerns that a similar pattern could emerge again.
Among other precious metals, spot silver fell 0.5% to $74.73 per ounce, platinum eased 0.2% to $1,932.25 per ounce, and palladium declined 0.3% to $1,365.25 per ounce.
