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In India, gold and silver are not purchased only as investment instruments. They also hold deep cultural and traditional significance. With prices soaring, buying physical gold has become increasingly difficult for common buyers.
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New Delhi: Gold and silver prices are touching new records almost every day, creating concern among investors and consumers alike. Both precious metals have recently hit all-time highs, with silver witnessing a particularly sharp surge. Over the past year alone, silver has delivered returns of up to 180 percent, making it one of the strongest-performing assets.
However, in India, gold and silver are not purchased only as investment instruments. They also hold deep cultural and traditional significance. With prices soaring, buying physical gold has become increasingly difficult for common buyers. As a result, hopes are rising that the upcoming Union Budget may bring some relief.
Expectations of Relief on GST and Import Duty
Market participants believe the government may place greater emphasis on domestic consumers in Budget 2026. One key expectation is a possible reduction in GST and import duty on gold. At present, gold purchases attract 3 percent GST.
Any tax relief could encourage demand for physical gold and provide some respite to buyers struggling with high prices.
Gold and Silver Hit Fresh Record Highs
On Friday, January 23, both gold and silver once again broke all previous records in the futures market. Gold surged to an all-time high of Rs 1,59,226 per 10 grams, while silver touched Rs 3,39,927 per kilogram, marking historic levels.
Prices Likely to Remain Strong in the Near Term
Amid ongoing global uncertainty, precious metal prices are expected to stay firm in the coming week. Traders are closely watching developments such as the US Supreme Court hearing on trade tariffs and the Federal Reserve’s upcoming interest rate decision.
Analysts also note that market attention is firmly on Finance Minister Nirmala Sitharaman’s Union Budget 2026–27, scheduled to be presented on February 1. Any changes in import duties or fiscal measures could significantly influence domestic gold and silver prices.
