The sharp fall in gold prices amid the huge increase in import duty has alerted Indian buyers, due to which the demand for gold has reduced significantly. Surendra Mehta, Secretary of India Bullion Jewelers Association, said that after the increase in duty, the demand for gold in the Indian market has fallen by more than 70 percent. On May 13, the government had increased the custom duty on gold from 6 percent to 15 percent.
The step was taken just two days after Prime Minister Narendra Modi appealed to citizens not to buy gold for a year. Mehta believes that the demand for gold has remained low after the PM’s appeal not to buy gold for a year. In such a situation, many Indian families are now selling their old gold jewellery, while people willing to buy gold are exercising caution.
According to Mehta’s estimate, the sale of old gold between April and June 2026 could be around 50 tonnes, which is more than 50 percent compared to the same period a year ago. The sharp fall in gold prices has also increased the demand for gold loans as the prices are expected to fall further, while the prices remain well above the level of Rs 95,600 a year ago.
Can gold become cheaper?
On January 29, the price of gold had gone above Rs 1,80,000 ($5,600) per 10 grams. Since then, it has fallen by almost 30 percent and on June 30, 2026, it fell to Rs 1,40,000 ($3,960). According to IBJA Secretary, the current mood of the market is not good at all. Due to fear of further falling prices, consumers and investors are selling gold in the open market.
Augmont Bullion’s report (June 30) states that gold has fallen below $4,000 to its lowest level in almost 8 months. It is witnessing a decline for the fourth consecutive month amid tensions in the Middle East and expectations of rising interest rates in America. It is estimated that the price of gold has fallen by more than 12 percent this month and by almost 15 percent this quarter — the biggest quarterly decline since 2013.
The report said that the price of gold has come down from its important low of $ 4,000 and is moving towards $ 3,960 (Rs 1,40,000). If this decline becomes confirmed, the price may go up to $3,600 (Rs 1,30,000). Given the ‘oversold’ situation, there is a possibility of a slight recovery (relief rally) towards $ 4,100 (Rs 1,45,000) and $ 4,165 (Rs 1,47,000).
Gold and silver became cheaper on MCX
A big fall is being seen in the prices of gold and silver on the country’s futures market Multi Commodity Exchange. At 9.50 am, gold prices fell by Rs 1,387 and were trading at Rs 1,41,144 per ten grams. During the trading session, a fall of Rs 1,416 was seen in the price of gold and the price came down to Rs 1,41,115 per ten grams. However, the price of gold opened with a fall at Rs 1,41,634 at 9 am.
On the other hand, a huge fall is being seen in the prices of silver. At 9.50 am, the price of gold is trading at Rs 2,24,488 per kg, down by Rs 4,075. Whereas during the trading session, a fall of Rs 5,662 was seen in the prices of silver and the price reached Rs 2,22,901 per kg. By the way, today at 9 am silver opened at Rs 2,25,000.
