COMEX Gold futures slipped below $4,600 an ounce, retreating from two-month highs as a stronger US dollar and mounting inflation fears pressured precious metals. Persistent inflation fueled by the prolonged Iran war and the closure of the Strait of Hormuz has strengthened expectations of a Federal Reserve rate hike, pushing the dollar index near 99 and weighing heavily on metal prices. Worries over Indian demand trends also played a part in pulling the precious metal lower after India drastically raised the effective import duty on gold and silver from 6% to 15%. The government has also capped gold imports under the Advance Authorisation scheme at 100 kilograms and tightened compliance and monitoring norms for importers in the gems and jewellery sector. This will be reflected in the upcoming gold and silver import data.

India's Gold imports came in at Rs 52639 crore in value terms in April 2026, soaring 98.60% compared to April 2025. Silver imports jumped as well, spiking 181% on year to Rs 3845 crore in the month. Gold imports gained around 85% on a monthly basis while silver imports slipped 32.75% on month. Gold imports value in FY26 rose by 30.58% on year to Rs 639523 crore while silver imports during the same period jumped 162% to Rs 107394 crore. COMEX Gold dropped around 4% for the week. MCX Gold soared sharply after government hiked the import duty and hit above Rs 164000 per 10 grams before moderating a bit and ending around Rs 158550 per 10 grams, up marginally for the week.

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