Gold and silver prices moved lower in India on Thursday as investors turned cautious ahead of key US inflation data that could influence the Federal Reserve’s next interest-rate decision. Gold prices remained near record-high levels, but the market lacked a clear direction as rising crude oil prices, geopolitical tensions and shifting expectations around US rates kept investors on edge.
On the Multi Commodity Exchange (MCX), gold futures were trading around ₹1,54,240 per 10 grams, down 0.03% in morning trade. Silver futures were also under pressure, falling around 0.49% to ₹2,42,820 per kg. The movement came as investors waited for fresh inflation signals from the US before taking larger positions in precious metals.
In the retail market, the latest gold rate today showed some variation across major cities. In Delhi, 24-carat gold was priced at ₹1,53,610 per 10 grams, while 22-carat gold stood at ₹1,40,809. In Mumbai, 24-carat gold was at ₹1,53,880 and 22-carat gold at ₹1,41,057 per 10 grams.
In Kolkata, the 24-carat gold price stood at ₹1,53,670 per 10 grams, while 22-carat gold was available at ₹1,40,864. Chennai recorded one of the higher rates, with 24-carat gold at ₹1,54,470 and 22-carat gold at ₹1,41,598 per 10 grams.
For silver price today, the 999-fine rate was around ₹2,41,860 per kg in Delhi and ₹2,42,280 in Mumbai. Kolkata’s rate stood at ₹2,41,960, while Chennai recorded ₹2,42,990 per kg. Rates can vary between cities depending on local taxes, dealer margins and other charges.
The precious metals market is being pulled in different directions. On one side, a weaker US dollar is supporting gold because dollar-denominated bullion becomes relatively cheaper for buyers holding other currencies. On the other, higher crude oil prices are raising concerns about inflation and could keep interest rates higher for longer.
Spot gold was around $4,396.69 per ounce in early Thursday trade, while US gold futures for December delivery were at about $4,440.80. The metal has remained sensitive to developments in the Middle East as investors continue to look for safety during periods of geopolitical uncertainty.
Gold is traditionally viewed as a safe-haven asset, meaning investors often turn to it when financial markets or the global economy become uncertain. However, gold does not generate interest income. That makes it less attractive when interest rates and bond yields rise, as investors can earn better returns from interest-bearing assets.
This has become particularly important because markets are reassessing the Federal Reserve’s policy outlook. Traders have been closely watching the possibility of a US rate hike even as economists surveyed by Reuters largely expect the Fed to keep rates steady at its September 15-16 meeting.
The next major trigger for gold and silver prices is likely to come from the US inflation data. Investors are awaiting the producer price index on Thursday, followed by consumer price inflation data on Friday.
The numbers could influence expectations about the Federal Reserve’s interest-rate path. If inflation comes in hotter than expected, markets could increase bets on higher interest rates, potentially putting pressure on gold. A softer inflation reading, meanwhile, could strengthen expectations of easier monetary policy and support bullion prices.
The dollar is another important factor. A weaker US currency has recently provided support to gold, while a stronger dollar could make bullion more expensive for buyers outside the US and limit demand.
The ongoing conflict involving the US and Iran has added another layer of uncertainty to the precious metals market. Rising tensions in the Middle East have pushed crude oil prices higher, with Brent crude moving above $100 a barrel.
That creates a complicated situation for gold. Geopolitical tensions can increase demand for safe-haven assets, supporting gold. At the same time, higher oil prices can fuel inflation and increase expectations that central banks will keep interest rates elevated, which can weigh on bullion.
This tug-of-war has kept gold price today movements volatile rather than allowing the metal to follow a clear trend.
Silver has also been volatile, but its price is influenced by both investment demand and industrial use. The metal is widely used in electronics, solar panels and several manufacturing applications, meaning its outlook is linked not only to inflation and interest rates but also to expectations for global economic activity.
On Wednesday, domestic silver prices had risen sharply, with the All India Sarafa Association reporting a ₹2,300 increase to ₹2,43,400 per kg. International spot silver also gained nearly 1% to around $66.25 an ounce. Thursday’s softer domestic futures therefore come after a recent rise rather than a prolonged one-way decline.
Investors and buyers are likely to remain cautious. The direction of the gold rate in India and silver prices over the next few sessions will depend heavily on US inflation figures, Federal Reserve expectations, the movement of the dollar and developments in the Middle East. With several of these factors moving at once, precious metals are likely to remain sensitive to every major global economic and geopolitical signal.