Gold prices edged lower while silver moved higher in domestic futures trading on Wednesday, September 23, as investors watched developments around the US-Iran talks and movements in crude oil.
On the Multi Commodity Exchange (MCX), gold futures were trading at ₹1,53,420 per 10 grams, down 0.13% in morning trade. Silver futures, meanwhile, gained around 0.31% to ₹2,40,720 per kg.
The mixed movement came as global markets reacted to signs of possible diplomatic engagement between the US and Iran. US President Donald Trump said officials had a “very good meeting” with Iran’s delegation, with the discussions reportedly lasting around three hours. The developments raised hopes that tensions in the Middle East could ease, although investors remained cautious about the outcome of any talks.
Gold has traditionally attracted demand during periods of geopolitical uncertainty because investors often view it as a safe-haven asset. However, changing expectations around the US dollar, interest rates and crude oil can push prices in either direction.
Spot gold was trading lower in international markets on Wednesday. Moneycontrol reported that spot gold declined about 0.60% to around $4,338 an ounce, while US gold futures were marginally higher at about $4,379.40. The stronger dollar and profit booking weighed on spot prices.
Silver, in contrast, continued to show strength. International silver prices rose about 0.5% to $67.40 an ounce after gaining 1.6% in the previous session. The metal has also been supported by expectations around industrial demand, although currency movements and monetary policy remain important factors for precious metals.
Retail gold prices were relatively steady to slightly lower across major Indian cities on Wednesday. The rates differ from one city to another because of local taxes, jewellery market conditions and other charges.
In Delhi, 24-karat gold was quoted at around ₹1,52,770 per 10 grams, while 22-karat gold stood at about ₹1,40,039. Silver 999 was priced at approximately ₹2,39,790 per kg.
In Mumbai, 24K gold was around ₹1,53,030 per 10 grams and 22K gold around ₹1,40,278. Silver was quoted at about ₹2,40,210 per kg.
In Kolkata, 24K gold stood at approximately ₹1,52,940 per 10 grams, while 22K gold was around ₹1,40,195. Silver was quoted near ₹2,39,970 per kg.
Prices were slightly higher in some southern markets. In Chennai, 24K gold was quoted at about ₹1,53,590 per 10 grams and 22K gold at ₹1,40,791. Silver was around ₹2,40,990 per kg.
In Hyderabad, 24K gold was around ₹1,53,380 per 10 grams, while 22K gold stood at about ₹1,40,598. Silver was quoted near ₹2,40,670 per kg.
The latest movement shows how differently gold and silver can respond to the same market developments.
Gold is particularly sensitive to safe-haven demand, the US dollar and expectations about interest rates. When investors expect lower interest rates, gold can become more attractive because it does not pay interest. A stronger dollar, on the other hand, can make gold more expensive for buyers holding other currencies.
Silver has both investment and industrial uses. This means its price can also respond to expectations around manufacturing activity and global economic growth.
Crude oil is another factor investors are watching closely. Brent crude fell below the $100-a-barrel level on Wednesday as markets responded to hopes of easing tensions between the US and Iran and signs of improving supply conditions. Brent was around $99.18 a barrel, while WTI crude was near $90.17.
Lower crude prices can reduce concerns about inflation, which in turn can influence expectations for central-bank interest rates. This creates another link between the oil market, the dollar, bond yields and precious metals.
For Indian buyers, gold and silver prices can also be affected by the rupee’s movement against the US dollar. Since India imports much of its precious-metal requirement, currency movements can influence domestic prices even when international bullion prices remain stable.
Gold and silver therefore remain sensitive to several moving parts at the same time. For consumers, the actual price paid for jewellery or physical bullion can also be higher than quoted market rates because of making charges, GST and dealer margins.
With geopolitical developments, crude prices and interest-rate expectations continuing to shift, traders are likely to keep a close watch on both gold and silver through the rest of the week.