Prime Minister Narendra Modi recently asked citizens to stop purchasing gold for at least one year to conserve the country's foreign exchange reserves and protect the economy. He made the appeal as global geopolitical tensions and surging crude oil prices put heavy pressure on the Indian rupee and the national import bill, with gold imports being the second largest in the nation’s import basket, the first being crude oil. Gold prices in India experienced a massive, one-day surge on May 13, 2026, with futures spiking nearly 6% to 7% (approx. ₹9,000–₹10,000) to over ₹1,63,000 per 10 grams on the MCX, following the drastic but arguably justified increase in the import duty on gold and silver to 15% from a soft 6%.

The Prime Minister’s exhortation, coupled with the follow-up measure of the hike in import duty, has been resented by the jeweller lobby. That smuggling of the yellow metal will get a leg up is something that is going to give sleepless nights to the authorities, especially the coastguards. But then it is unlikely that the households will give up their fascination with the yellow metal, what with its safe haven character asserting itself from time to time. The year 2025 began with 24K gold at approximately ₹85,000/10g. But by the festive Dhanteras period in October and year-end, domestic prices surged, settling between ₹1,27,000 to ₹1,36,000/10g largely due to the Trump........

© Free Press Journal