India gold discounts hit record $207/oz as 15% duty hike empties jewellery counters

A duty jump to 15% from 6% plus a 3% levy pushed domestic gold to ₹164,497 per 10g, triggering profit-taking and ETF selling. Jewellers and retail buyers stepped back, while dealer smuggling margins doubled to 18%, threatening festive-season organised-retail volumes in hubs like Mumbai and Chennai.

— FiledThu, 14 May, 2026, 04:16 IST·First seen Thu, 14 May, 2026, 03:55 IST·Source The Hindu BusinessLine

What happened

footfall · India's gold import duty hike to 15% triggered record $207/oz physical market discounts as investors booked profits and ETFs saw selling. Retail

Key facts

  • $200/oz discount
  • $207/oz peak discount
  • $17/oz prior discount
  • 15% import duty (up from 6%)
  • 3% sales levy
  • 7.2% futures jump
  • 164,497 rupees per 10g
  • smuggling margin 18% vs 9%

Why this matters

Distressed independent jewellers facing duty-driven working-capital squeezes become acquisition targets, while partnerships with compliant bullion importers gain strategic value as the grey-market share expands.