Gold & Silver ETFs Jump After Duty Hike: Why Gold Finance Shares Are Rallying?

Mumbai | 13 May 2026 

Gold and silver exchange-traded funds rose up to 6% on 13 May 2026 after the government raised import duties on the two precious metals to 15% from 6%. Shares of gold financiers Manappuram Finance, Muthoot Finance and IIFL Finance gained up to 8% in the same session, while jewellery stocks declined between 1.5% and 6%. 

Why India Raised Gold and Silver Import Duties? 

The government notified the duty hike through orders issued on 13 May 2026 to ease pressure on foreign exchange reserves. The decision followed Prime Minister Narendra Modi’s appeal to citizens to avoid gold purchases amid economic stress linked to the ongoing Middle East conflict. 

Higher duties are expected to reduce precious metal imports, support the rupee, and help narrow the trade deficit. Gold and silver remain among India’s largest non-essential import categories, and a sharp duty increase typically dampens official inflows. 

How Bullion Prices Moved After the Duty Hike? 

Domestic futures responded immediately to the duty change. Gold futures jumped 7.2% to Rs 1,64,497 per 10 grams. Silver futures surged 8% to Rs 3,01,429 per kg. 

The higher import duty raises the landed cost of bullion, which feeds directly into domestic spot prices. Higher physical import costs also tend to push investors toward ETF routes, supporting fund asset values. 

Gold and Silver ETFs That Gained the Most 

Gold ETFs that rallied between 4% and 6% include: 

• Nippon India Gold ETF 

• Tata Gold ETF 

• HDFC Gold ETF 

• ICICI Prudential Gold ETF 

Silver ETFs that climbed between 4% and 6% include: 

• Tata Silver ETF 

• Nippon India Silver ETF 

• HDFC Silver ETF 

Why Gold Financier Shares Are Rallying? 

Manappuram Finance, Muthoot Finance and IIFL Finance rose up to 8% as higher per-gram gold rates lifted the overall value of jewellery held as loan security. 

Gold financing companies grow their loan books primarily on value rather than volume. When domestic gold prices rise, the collateral value of existing gold loans expands, which automatically lifts total assets under management for these lenders. 

Jewellery Stocks Under Pressure 

Jewellery retailers moved in the opposite direction. Titan Company, Kalyan Jewellers and Thangamayil Jewellers lost between 1.5% and 6% on 13 May 2026. 

Outlook 

Higher domestic gold prices alter the relative cost of physical bullion versus exchange-traded routes for retail investors. The duty change also shifts the import cost base for jewellery retailers, who source raw gold at the new tariff level. 

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