Gold and silver prices eased in India on Monday, September 7, as precious metals came under pressure from stronger expectations of a US interest-rate hike. Investors are also keeping a close watch on geopolitical tensions and upcoming US inflation data, which could influence the Federal Reserve’s policy decision later this month.
In the domestic retail market, 24-carat gold in Delhi was priced at around Rs 1,52,370 per 10 grams, while 22-carat gold stood at Rs 1,39,673 per 10 grams. In Mumbai, 24-carat gold was available at around Rs 1,52,640 per 10 grams, while 22-carat gold was priced at Rs 1,39,920.
Kolkata recorded a 24-carat gold price of about Rs 1,52,420 per 10 grams, while 22-carat gold was around Rs 1,39,718.
The latest movement comes after a volatile week for the precious metals market. Gold prices have been supported for much of the year by demand for safe-haven assets, but the latest US economic data has shifted attention towards interest rates.
Internationally, spot gold was trading around $4,405 per ounce, down about 0.5 per cent in early trade. Gold futures also moved lower. The decline followed stronger-than-expected US employment data, which increased expectations that the Federal Reserve could raise interest rates this month.
The US economy added significantly more jobs than markets had expected in August, while unemployment remained at 4.1 per cent. The data prompted traders to increase their bets on a September rate hike.
For gold investors, interest rates matter because the metal does not generate interest income. When bond yields rise, gold can become relatively less attractive compared with interest-bearing assets. This has added some pressure to gold prices today, despite continued demand for the metal as a hedge against economic and geopolitical uncertainty.
Silver also moved lower in the domestic market but remained at elevated levels.
According to the latest retail rates, 999-purity silver in Delhi was priced at around Rs 2,36,000 per kg, while Mumbai recorded a rate of approximately Rs 2,36,410 per kg. In Kolkata, silver was priced at around Rs 2,35,830 per kg.
In Maharashtra, the silver rate was around Rs 2,65,900 per kg on September 7, down Rs 100 from Rs 2,66,000 per kg on the previous day. The state has nevertheless seen silver prices remain relatively strong through the opening week of September.
Silver prices are influenced by both investment demand and industrial consumption. The metal is widely used in electronics, solar panels and several other industrial applications, making its price sensitive to expectations about global economic activity.
International silver prices were trading around $66.81 per ounce, with the metal also facing pressure from the changing outlook for US monetary policy.
Gold prices continued to vary slightly between major Indian cities.
In Bengaluru, 24-carat gold was priced at around Rs 1,52,760 per 10 grams, while 22-carat gold stood at about Rs 1,40,030.
In Hyderabad, 24-carat gold was around Rs 1,52,860 per 10 grams, with 22-carat gold at approximately Rs 1,40,122.
Chennai recorded the highest 24-carat gold rate among the major cities listed, at around Rs 1,53,060 per 10 grams, while 22-carat gold was priced at approximately Rs 1,40,305.
These are indicative retail bullion rates and can vary between jewellers depending on local taxes, making charges, premiums and other costs. The final price paid by a jewellery buyer can therefore be higher than the quoted market rate.
Apart from US interest-rate expectations, the global gold market is also responding to geopolitical developments. Continued uncertainty surrounding the US-Iran conflict has kept investors interested in safe-haven assets, although expectations of tighter monetary policy are currently limiting gold’s gains.
The focus will now shift to key US inflation readings due later this week. The US Consumer Price Index and Producer Price Index could provide fresh clues about the Federal Reserve’s next move.
A softer inflation reading could reduce expectations of aggressive monetary tightening and potentially support gold prices. On the other hand, persistent inflation could strengthen the case for higher interest rates, keeping pressure on the yellow metal.
In India, currency movements will also remain important. A stronger rupee can reduce the cost of imported gold, while a weaker rupee tends to make the metal more expensive in the domestic market.
The latest gold rate today remains well above historical levels, making timing an important consideration. Investors, meanwhile, are likely to continue tracking global interest rates, the dollar, geopolitical tensions and central-bank buying before making fresh decisions.
Both gold and silver remain closely watched commodities. While gold prices have softened slightly, silver continues to trade at elevated levels, leaving investors and consumers alert to every major move in global markets.