Gold ETF prices revive as investors flock on higher import duties on yellow metal

Gold (Exchange Traded Funds) rallied after trading sideways or staying calm for more than 3 months, as higher import duties have made them costly, on Wednesday (May 13, 2026).

Gold ETFs, which are mutual-fund-like schemes that track gold prices, were a preferred investment option in a little more than a year as stock markets dipped.

Most ETFs increased by about 7%, with Mirae Asset increasing over 8% in a single day to ₹146 a unit, making it one of the most expensive ETFs among the nearly 20 funds in the cohort. The costliest ETF was Choice Gold ETF trading ₹149.5 a dollar up about 6% on Wednesday (May 13, 2026).

The renewed interest in gold ETFs comes on the back of an increase in import duties for gold, which was brought in to discourage gold purchases. Prime Minister Narendra Modi had advised citizens to reduce gold purchases in the coming year to reduce foreign exchange depletion.

After rallying over 60% in a year in calendar year 2025, gold prices were expected to fade, as analysts felt that the rally had peaked. Accordingly, the yellow metal and investment instruments related to it did see a slower phase. The import duty announcement has renewed interest in gold ETFs as an investment avenue.

The increase in gold prices is expected to continue to increase, say analysts.

“Our structural view on gold and silver remains constructive. The global de-dollarisation theme, central bank buying, and currency-debasement hedging are all multi-year drivers that operate independently of any domestic tax decision. We expect international gold to move towards $6,000 an ounce over the next 12 to 18 months, with silver positioned as a meaningful beneficiary alongside it,” said Anindya Banerjee, Head of Commodity and Currency Research, Kotak Securities.