NEW DELHI: India has boosted its import tariffs on gold and silver in an effort to shore up the sagging value of the rupee and bolster foreign currency reserves hit by war in the Middle East. Gold imports are financed through dollars, which means buyers have to spend down foreign reserves or convert rupees to make purchases. Prime Minister Narendra Modi had already appealed to the public days ago to avoid buying gold for a year, as the rupee&#39;s year-long slide against the dollar has worsened amid the Iran war. The government more than doubled import taxes on gold and silver to about 15% from the existing 6%, according to two official orders issued late Tuesday. The energy supply crisis caused by the Mideast war&#39;s closure of the Strait of Hormuz &mdash; through which a fifth of the world&#39;s crude passed &nbsp;&mdash; has hit India hard. India is the world&#39;s third-largest oil importer, and the spiking cost of petroleum has hit its foreign currency reserves. Elevated crude oil prices have increased India&#39;s import bill, putting additional strain on the country&#39;s balance of payments and foreign exchange reserves. Modi on Sunday urged the people of India to cut down on petrol and diesel consumption in response to supply disruptions caused by the war in the Middle East. Gold, seen as a symbol of wealth and prosperity and widely used during weddings as well as festivals, ranks second among India&#39;s imports, after crude oil.

A staff member shows gold bangles at a jewellery store in Ahmedabad on May 12, 2026. (Photo: AFP)

Business

India is the world's third-largest oil importer, and the spiking cost of petroleum has hit its foreign currency reserves.

India hikes gold, silver duties to protect sliding rupee

NEW YORK:&nbsp;Financial markets swung Friday after US President Donald Trump named his choice to lead the Federal Reserve, lowering the prices of&nbsp;<a href="https://www.pakistantv.com/article/gold-soars-towards-5600-as-trump-rattles-sabre-over-iran" target="_blank" style="color:#0073e6;" rel="noopener noreferrer">gold</a>&nbsp;and silver while lifting European stocks. The precious metals, viewed as safe-haven investments, had already begun sliding on reports&nbsp;that Trump had nominated former Fed official Kevin Warsh to replace Jerome Powell as chair of the US central bank. <a href="https://www.pakistantv.com/article/gold-silver-hit-records-and-stocks-fall-as-trump-fans-trade-fears" target="_blank" style="color:#0073e6;" rel="noopener noreferrer">Trump</a>&nbsp;announced his choice Friday on social media, saying that Warsh, a former Morgan Stanley investment banker and Fed governor, &quot;will go down as one of the GREAT Fed Chairmen, maybe the best.&quot; Kathleen Brooks, research director at XTB trading group, said the &quot;interesting pick...may give the market some hope that Fed independence will be preserved.&quot; Trump&#39;s personal attacks on Fed boss Jerome Powell &ndash; set to depart in May &ndash; have fueled widespread fears among investors that the central bank&#39;s policy independence is under threat, potentially posing an inflation risk to the US economy. A roller-coaster week Precious metals prices tumbled on Friday after surging in recent days when investors sought a safe haven over doubts about Trump&#39;s policies. Gold fell as much as 12% at one point, retreating below $5,000 an ounce after hitting a record high near $5,600 on Thursday. Silver, which Thursday reached an all-time peak above $120 an ounce, shed around 30% to about $82 an ounce. Financial markets have endured a roller-coaster ride this week as traders weathered a weaker dollar, Trump&#39;s threats against&nbsp;<a href="https://www.pakistantv.com/article/gold-soars-towards-5600-as-trump-rattles-sabre-over-iran" target="_blank" style="color:#0073e6;" rel="noopener noreferrer">Tehran</a>, the president&#39;s resumption of tariff threats and a possible US government shutdown. Asian stock markets closed out the week with some hefty losses following Thursday&#39;s tech-led retreat on Wall Street on renewed concerns over vast investments in artificial intelligence. Healthy earnings from Meta, Samsung and SK Hynix provided much cheer early in the week but Microsoft was punished over worries its costly AI program might not result in financial gains. There are fears that firms&#39; valuations may be a little too stretched and that&nbsp;<a href="https://www.pakistantv.com/article/afghan-markets-remain-stocked-but-poverty-leaves-22-million-unable-to-buy" target="_blank" style="color:#0073e6;" rel="noopener noreferrer">markets</a>&nbsp;could be in a bubble, having soared in recent years to record highs on the back of a tech-fueled rally. The dollar pushed higher on Warsh&#39;s nomination. &quot;Most currency strategists would argue that his nomination may be good news for the dollar, which can price out some risks of a more dovish pick,&quot; said <a data-fr-linked="true" href="//Forex.com" style="font-size: 18px; color: rgb(0, 115, 230);">Forex.com</a>&#39;s Fawad Razaqzada. &quot;However, for as long as policy uncertainty hangs over the US economy with Trump&#39;s tariff theatrics, the dollar debasement narrative is likely to hold back the greenback from making a meaningful comeback.&quot; Among individual companies, Verizon surged 11.8% as it reported its highest quarter of mobility and broadband subscription increases since 2019.

Gold minted bars are pictured at a gold dealer in Madrid, on January 30, 2026. (AFP)

Banking

Markets shifted after Trump named new Federal Reserve chair nominee, with prices of precious metals lowering and European stocks lifting. 

Articles tagged with "silver prices"

India hikes gold, silver duties to protect sliding rupee

Gold, silver prices dip after Trump names new Federal Reserve nominee