India's Import Duties on Gold and the Potential Consequences

Advertisement - This article is distributed on behalf of Fury Gold Mines Ltd. and Banyan Gold Corp., with which SRC swiss resource capital AG has paid IR consulting agreements. Publisher: SRC swiss resource capital AG · Author: Ingrid Heinritzi · First published: May 21, 2026, 6:40 a.m. Zurich/Berlin ·

So Indians are expected to buy less gold. This is because the government wants to conserve foreign exchange reserves in order to counteract geopolitical uncertainties and pressure on the Indian rupee. On the one hand, gold is in demand as a hedge against inflation or war; on the other hand, gold demand is expected to decline. After India raised import duties on gold so significantly, the price of gold in India has gone up.

And higher prices could deter buyers, which would not be so beneficial for the gold price. However, it is important to consider how important gold is to the Indian population. It is not only the investment vehicle par excellence, but also an integral part of festivals and weddings. So there are two opposing forces at work here.

Global stock markets closed the week mostly lower. Bond yields in developed countries, on the other hand, rose as higher oil prices once again fueled inflation fears. The U.S. dollar showed strength - which is also not particularly beneficial for the price of the precious metal - and so this scenario is weighing on the gold price. In addition, the majority now expects an interest rate hike rather than a cut, which would be good for the gold price. At the very least, the latest Fed meeting points to a longer pause in easing. No wonder the gold price has taken a serious hit recently. Investors should bear in mind, however, that the fundamentals are excellent and that pullbacks should be used as an opportunity to buy.

Fury Gold Mines (- https://www.commodity-tv.com/ondemand/companies/profil/fury-gold-mines-ltd/ -), well-financed, holds a gold and mineral exploration portfolio totaling over 157,000 hectares in Québec. In addition, the company owns 11.3 million common shares of Dolly Varden Silver Corp. In 2025, the company drilled a total of more than 18,000 meters on its projects. Encouraging drill results were recently reported from the Eau Claire project (for example, 11.74 grams of gold per ton of rock over 6.63 meters).

Banyan Gold (- https://www.commodity-tv.com/ondemand/companies/profil/banyan-gold-corp/ -) owns the flagship AurMac project in the Yukon, among other projects; this project covers 303 square kilometers and benefits from excellent infrastructure. A private placement has just injected fresh capital into Banyan Gold’s coffers. Among other things, this is intended to expand the drilling program, which has already yielded promising results. A new mineral resource estimate has just reported a welcome increase in total indicated and inferred mineral resources. A preliminary economic assessment is expected later this year.

Current company information and press releases from Banyan Gold (- https://www.resource-capital.ch/de/unternehmen/banyan-gold-corp/ -) and Fury Gold Mines (- https://www.resource-capital.ch/de/unternehmen/fury-gold-mines-ltd/ -).

Further information is also available in our new Precious Metals Report at the following link: https://www.resource-capital.ch/de/reports/ansicht/edelmetall-report-2025-04/.

Sources: Banyan Gold, Fury Gold Mines,

https://www.gold.org/goldhub/gold-focus/2026/05/weekly-markets-monitor-indias-import-duty-reversal;

https://www.resource-capital.ch/de/reports/ansicht/edelmetall-report-2025-04/.

Pursuant to Section 85 of the German Securities Trading Act (WpHG) in conjunction with Article 20 of the Market Abuse Regulation (MAR) (EU) 2016/958, we hereby note that authors, employees, and affiliated companies of Swiss Resource Capital AG (SRC) may hold positions (long/short) in the issuers discussed. Compensation/Relationship: IR contracts/advertorials: Author’s own positions: none; SRC net position: less than 0.5%; Issuer’s stake ≥ 5% in SRC: no. Update Policy: no obligation to update. No guarantee regarding the German translation. Only the English version of this news release is authoritative.

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