Gold and silver prices remained under pressure on Friday, August 28, wherein on the Multi Commodity Exchange (MCX), gold futures were trading at around ₹1,58,410 per 10 grams, down about 0.75% during the morning session. Silver futures were also lower, trading at approximately ₹2,40,750 per kg, down around 0.43%.
The movement comes as global investors assess the direction of US interest rates, the strength of the dollar and continuing uncertainty around geopolitical tensions. Investors turned cautious ahead of key signals from the US Federal Reserve and continued to monitor geopolitical developments. Domestic bullion prices moved lower in early trade, with both metals facing selling pressure after a strong run in recent sessions.
Gold prices ease after recent gains
Gold has seen considerable volatility through August, with prices climbing sharply earlier in the month before giving up some of those gains.
According to the latest retail market data, the average Indian price for 24-carat gold stood around ₹1,58,334 per 10 grams, while 22-carat gold was around ₹1,44,857 per 10 grams on August 28. Both rates were lower than the previous session.
The latest movement reflects a broader correction in the domestic gold market. Gold had reached significantly higher levels earlier this week, but prices have since softened as traders booked profits and waited for fresh signals from global markets.
The precious metal remains well above its levels seen at the beginning of the month, highlighting the sharp rise in prices despite the recent pullback.
City-wise gold rates on August 28
Retail gold prices vary slightly between cities because of local taxes, transportation costs, demand and dealer margins.
In Delhi, 24-carat gold was priced at around ₹1,58,150 per 10 grams, while 22-carat gold stood at approximately ₹1,44,971.
In Mumbai, the 24-carat rate was around ₹1,58,430 per 10 grams, with 22-carat gold at nearly ₹1,45,228.
Bengaluru recorded a 24-carat gold price of around ₹1,58,340, while 22-carat gold was about ₹1,45,145.
In Kolkata, 24-carat gold was available at around ₹1,58,000 per 10 grams, while 22-carat gold was priced near ₹1,44,834.
Prices were somewhat higher in Chennai, where 24-carat gold was around ₹1,58,670 per 10 grams and 22-carat gold stood at approximately ₹1,45,448.
Silver also retreats from recent highs
Silver has also experienced strong price movements in recent weeks, benefiting from investor demand and expectations surrounding industrial consumption.
However, silver prices softened on Friday. MCX silver was trading near ₹2,40,750 per kg, while retail rates for 999-purity silver varied across major cities.
In Delhi, 999-fine silver was priced at approximately ₹2,39,730 per kg. Mumbai recorded a rate of around ₹2,40,150, while Bengaluru stood at about ₹2,40,510.
Silver was priced higher in Chennai at approximately ₹2,41,020 per kg, while Hyderabad recorded a rate close to ₹2,40,700 per kg.
The decline suggests that investors are also booking profits after silver’s recent rally.
US Fed signals remain crucial
One of the biggest factors influencing gold and silver markets is the outlook for US interest rates.
Investors are closely watching comments from Federal Reserve Chair Kevin Warsh at the Jackson Hole economic symposium. Any indication about the timing or pace of future rate changes could influence the dollar and US Treasury yields, which in turn affect precious metals.
Gold generally benefits when interest rates and bond yields fall because the opportunity cost of holding a non-yielding asset becomes lower. Conversely, expectations of higher rates can put pressure on bullion prices.
Market participants are therefore waiting for clearer guidance before making large fresh bets on gold.
Geopolitical tensions add to market volatility
Geopolitical developments are another important factor keeping precious metals markets unsettled.
Uncertainty surrounding the US-Iran situation and the wider Middle East remains a concern for investors. Questions around the future of the Strait of Hormuz, a critical route for global energy shipments, have added another layer of uncertainty to financial markets.
Iran has reportedly linked any understanding over the Strait to wider developments involving conflicts in the Middle East. At the same time, prospects for an immediate return to diplomacy remain uncertain.
Such developments can encourage investors to seek safe-haven assets such as gold, although the immediate price reaction also depends on movements in the dollar and US bond yields.
Gold remains higher for August
Despite the recent correction, gold has delivered a strong performance over the broader August period.
India’s 24-carat gold rate began the month at around ₹1,41,399 per 10 grams and was near ₹1,58,334 on August 28. The metal also touched a much higher monthly peak earlier in the month.
This means the recent fall should be viewed in the context of a larger upward move rather than as a complete reversal of the precious metal’s broader trend.
What buyers should watch now
For jewellery buyers, the latest fall could offer some relief after the sharp rise in gold prices. However, retail buyers should remember that quoted bullion rates do not necessarily represent the final amount payable at a jewellery store.
Making charges, GST and other applicable costs can increase the final jewellery bill.
Investors, meanwhile, are likely to focus on global interest-rate expectations, the US dollar, bond yields and geopolitical developments before deciding whether the recent correction represents a temporary pause or the beginning of a deeper decline.