Gold Silver Rates Today: Silver ETFs Gain 2 Per Cent After Import Curbs

Silver exchange-traded funds (ETFs) rose as much as 2 per cent on May 18 after the Indian government tightened import rules for silver bars and semi-finished silver products. The move is expected to reduce supply in the domestic market and support local silver prices in the coming weeks.

The Centre has changed the import status of silver bars from “free” to “restricted”, meaning traders and importers will now need special approval to bring large quantities of silver into the country. The decision comes amid concerns over rising imports, pressure on the rupee, and a widening trade deficit.

Among gainers in the domestic market were Tata Silver ETF, which rose around 1.9 per cent, and Groww Silver ETF, rising 2 per cent. SBI Silver ETF, Nippon India Silver ETF,  Zerodha Silver ETF, and HDFC Silver ETF were also among the gainers on May 18.

India is the world’s largest consumer of silver and depends heavily on imports to meet domestic demand. Silver imports crossed record levels in FY26, and $411 million worth of silver was imported in April alone, around 157 per cent higher compared to a year ago.

Market experts believe the new restrictions could tighten supply in the local market, leading to higher domestic premiums even if global silver prices remain weak. This expectation pushed silver ETFs higher in early trade. Funds tracking silver prices may also see stronger investor inflows if prices continue to remain elevated in India.

Despite the rise in silver ETFs, bullion prices remained volatile on May 18 due to a combination of global factors. On the Multi-Commodity Exchange (MCX), silver futures saw sharp swings and traded marginally lower during the session after recent strong gains. Gold prices also showed little gains amid a stronger US dollar and rising oil prices linked to tensions in West Asia.

According to commodity market data, MCX silver futures traded around Rs 2.72 lakh per kilogram, while MCX gold futures hovered near Rs 1.59 lakh per 10 grams during the day.

Globally, precious metals came under pressure as rising crude oil prices increased fears that inflation could remain high for longer. This has reduced hopes of early interest rate cuts in the United States, making non-interest-bearing assets like gold less attractive to investors.

Analysts said domestic silver prices may remain supported because of the import curbs. Since silver ETFs are linked to local silver prices, any supply shortage or rise in premiums could continue to benefit these investment products in the near term.  

“The most critical is crude oil prices, and if it continues to advance, there might be additional pressure on the rupee and gold in the domestic market may rise due to the currency impact. MCX Gold June may rise to Rs. 167,000/10 g as momentum is bullish,” Jigar Trivedi, senior analyst at IndusInd Securities, formerly Reliance Securities, said.