Gold and silver prices came under pressure on Thursday, September 17, after the US Federal Reserve raised interest rates for the first time in three years. The move strengthened the dollar and reduced the appeal of non-yielding assets such as gold, leading to a sharp fall in domestic precious metal futures.
Spot gold slipped below $4,250 an ounce in early trade before recovering some ground to around $4,290. US gold futures were down nearly 1% at about $4,344. Silver, however, held above $63 an ounce in international markets.
The pressure was more visible on the domestic market. Gold futures for the October contract opened lower on the Multi Commodity Exchange (MCX), falling 1.01% to ₹1,50,937 per 10 grams around 9:04 am. Silver futures also declined 1.02% to ₹2,32,400 per kg.
Another market report showed an even sharper intraday move, with gold falling by around ₹2,000 per 10 grams and silver dropping nearly ₹4,600 per kg after the Fed decision.
Despite the fall in futures, retail gold prices across major Indian cities remained around ₹1.53 lakh per 10 grams for 24-carat gold.
The national benchmark price for 24K gold was around ₹1,53,600 per 10 grams, while 22K gold was priced at approximately ₹1,40,800 per 10 grams, according to city-wise bullion data.
In Delhi, 24K gold was quoted at around ₹1,53,060 per 10 grams, while 22K gold stood at approximately ₹1,40,305.
Mumbai saw 24K gold at about ₹1,53,320 per 10 grams and 22K gold at around ₹1,40,543.
In Chennai, 24K gold was among the higher city rates at around ₹1,53,770 per 10 grams, with 22K gold at approximately ₹1,40,956.
Kolkata recorded 24K gold at around ₹1,53,120 per 10 grams and 22K gold at about ₹1,40,360.
Bengaluru’s 24K gold rate stood at nearly ₹1,53,440 per 10 grams, while Hyderabad reported around ₹1,53,560.
The differences between cities are relatively small, but the final amount paid by jewellery buyers can be higher because of GST, making charges and other applicable costs.
Silver also moved lower in domestic futures trading, although retail prices remained above ₹2.3 lakh per kg.
The national price for 999-fine silver was around ₹2,35,140 per kg on September 17. City-wise rates included approximately ₹2,34,310 in Delhi, ₹2,34,710 in Mumbai, ₹2,35,390 in Chennai, ₹2,34,400 in Kolkata, ₹2,34,890 in Bengaluru and ₹2,35,080 in Hyderabad.
Silver has continued to attract attention because of its strong longer-term performance. While gold has seen some recent weakness, silver has gained over the past year, supported by both investment demand and its industrial uses.
The biggest trigger for Thursday’s movement was the US Federal Reserve’s interest-rate decision. Higher interest rates generally make interest-bearing assets more attractive compared with gold, which does not generate regular income.
The dollar’s movement also matters. A stronger US currency can make dollar-priced gold more expensive for buyers holding other currencies, putting pressure on international demand.
At the same time, easing concerns over oil supply disruptions in the Middle East have taken some support away from gold’s safe-haven appeal. Brent crude fell around 1.22% to $104.62 a barrel in early trading, while US West Texas Intermediate crude declined about 1.2% to $101.20.
Gold has benefited from geopolitical uncertainty in recent months, as investors often turn to bullion during periods of market stress. A reduction in immediate supply concerns and softer oil prices can therefore influence investor positioning in precious metals.
The sharp movement in MCX gold and silver shows how quickly precious metal prices can react to global monetary policy. The Fed’s rate decision, US dollar movements, crude oil prices, geopolitical developments and global investor demand are likely to remain important factors for gold and silver prices in the coming sessions.
For Indian consumers, daily retail gold rates can also vary between cities and jewellers. Buyers should therefore check the prevailing 24K or 22K gold price before making a purchase and remember that jewellery prices include additional charges beyond the quoted bullion rate.
With gold still trading close to ₹1.54 lakh per 10 grams and silver above ₹2.3 lakh per kg, precious metals remain a closely watched part of India’s retail and investment