Gold Rate Today: Gold Retreats on Thursday After Wednesday’s Tariff-Driven Surge; 24K Slips ₹5,560 Per 10 gm

Mumbai, May 14: Gold prices retreated on Thursday after Wednesday’s historic tariff-driven surge, with the national price of 24-karat gold (99.9% purity) easing to ₹1,62,330 per 10 grams — down ₹5,560 from Wednesday’s ₹1,67,890. The 22-karat rate (91.6% purity) softened to ₹1,48,800 per 10 grams, a decline of ₹5,100 from Wednesday’s ₹1,53,900. The 18-karat price (75% purity) fell to ₹1,21,750 per 10 grams, retreating ₹4,170 from the previous session’s ₹1,25,920.

On a per-gram basis, 24K gold now stands at ₹16,233, up ₹33 from the day before on a daily increment basis, while 22K trades at ₹14,880 (up ₹30) and 18K at ₹12,175 (up ₹25) — the modest daily increments reflecting a market settling after Wednesday’s extraordinary single-session jump.

Thursday’s pullback is best understood in the context of the extraordinary session that preceded it. On Wednesday, the government nearly doubled import duties on gold and silver to 15 per cent — comprising a 10 per cent basic customs duty and a 5 per cent Agriculture Infrastructure and Development Cess — sending 24K gold soaring ₹13,910 per 10 grams in a single session. Thursday’s modest correction suggests the market is consolidating after that repricing shock, with retail demand showing some hesitance at elevated levels even as the structural impact of the higher tariff continues to be absorbed by the trade.

City-Wise Gold Rates: Southern and Western India

Chennai continued to command the highest gold rates among India’s major cities on Thursday. The southern metropolis quoted 10 grams of 24-karat gold at ₹1,64,180, 22-karat at ₹1,50,500 and 18-karat at ₹1,25,700 — a consistent premium over the national price that reflects localised jewellery demand patterns and association-driven pricing norms unique to Tamil Nadu. Mumbai, Kolkata, Bangalore, Hyderabad, Kerala and Pune were all uniformly priced at the national benchmark: 24-karat at ₹1,62,330, 22-karat at ₹1,48,800, and 18-karat at ₹1,21,750 per 10 grams, underscoring how tightly India’s major bullion centres track a common national rate in the absence of local supply disruptions.

Delhi quoted 24-karat gold at ₹1,62,260 per 10 grams, 22-karat at ₹1,48,950 and 18-karat at ₹1,21,900 — a marginal premium over the national rate that has historically reflected the capital’s higher dealer margins and the influence of its large institutional jewellery trade. Vadodara and Ahmedabad were both quoted at ₹1,62,380 for 24-karat, ₹1,48,850 for 22-karat and ₹1,21,800 for 18-karat gold per 10 grams, broadly in line with the Gujarat convention of quoting slightly above Mumbai rates. Across all cities, the pattern of Thursday’s pricing reflected the new tariff regime being uniformly absorbed into domestic rate structures, even as the market awaited clearer demand signals following the abrupt disruption to price levels.

On Wednesday, the government sharply raised import tariffs on gold and silver to 15 per cent from 6 per cent, comprising a 10 per cent basic customs duty and a 5 per cent Agriculture Infrastructure and Development Cess, in a move aimed at curbing overseas purchases and easing pressure on India’s foreign exchange reserves. The revised duty structure, which more than doubles the previous effective tax rate, is expected to help narrow the country’s widening trade deficit and lend support to the rupee, which has been among Asia’s worst-performing currencies this year.

Source: goodreturns.in