Gold and silver prices showed signs of recovery on Friday, September 25, as investors returned to the precious metals market after recent declines. Buying at lower levels helped prices recover, although a stronger US dollar, elevated Treasury yields and expectations of further interest-rate tightening continued to limit the upside.
In the domestic futures market, the benchmark October gold contract on the Multi Commodity Exchange (MCX) opened ₹300 higher at ₹1,51,010 per 10 grams, compared with its previous close of ₹1,50,710. It later traded around ₹1,51,135, up ₹425. The December silver contract opened at ₹2,33,736 per kg, compared with the previous close of ₹2,33,482, and was later trading around ₹2,33,883.
The latest movement comes after gold and silver prices faced pressure in recent sessions. Gold had recently traded above ₹1.54 lakh per 10 grams, while silver had moved above ₹2.40 lakh per kg. Both metals have since corrected, creating buying interest among traders at lower levels.
Retail gold prices remained relatively stable across major Indian cities on Friday.
The indicative 24-carat gold price was around ₹1,51,580 per 10 grams, while 22-carat gold was around ₹1,38,948 per 10 grams. Silver of 999 purity was priced at approximately ₹2,34,040 per kg at the national level. Retail rates can vary between cities and jewellers depending on local taxes, premiums and other charges.
In major cities, 24-carat gold was priced at around ₹1,51,040 per 10 grams in Delhi, ₹1,51,300 in Mumbai and ₹1,51,100 in Kolkata. In Chennai, the rate was around ₹1,51,740 per 10 grams.
For 22-carat gold, the corresponding prices were approximately ₹1,38,453 in Delhi, ₹1,38,692 in Mumbai and ₹1,38,508 in Kolkata. Chennai recorded a higher rate of around ₹1,39,095 per 10 grams.
Silver prices also differed across cities. Silver 999 was around ₹2,33,220 per kg in Delhi, ₹2,33,620 in Mumbai and ₹2,33,310 in Kolkata. Chennai recorded a rate of around ₹2,34,300 per kg.
Consumers should note that these are indicative market rates. The final price paid for jewellery can be higher after adding making charges, GST and other applicable levies.
In the international market, gold prices were also volatile. Comex gold futures were trading around $4,310 an ounce, while silver was near $64.35 an ounce during the morning session. Gold opened at $4,309.50 and later moved to around $4,318.10.
Spot gold, however, remained under pressure in some early international market readings, reflecting the conflicting forces currently driving bullion prices. A stronger US dollar and higher US Treasury yields have reduced the appeal of non-interest-bearing assets such as gold.
The US Federal Reserve’s interest-rate stance has become a key factor for precious metals. The Fed raised its policy rate this month to a range of 3.75%-4%, and markets are assessing the possibility of further rate increases. Higher interest rates generally increase the opportunity cost of holding gold and can strengthen the dollar.
Geopolitical developments are providing another layer of uncertainty for bullion markets. Investors continue to monitor tensions in the Middle East and developments surrounding the US-Iran situation.
Gold traditionally attracts safe-haven demand during periods of geopolitical and financial uncertainty. However, the impact can be offset when such tensions push crude oil prices higher, raising inflation concerns and reducing expectations of easier monetary policy.
The interaction between gold prices, crude oil, the US dollar and interest rates is therefore becoming increasingly important for commodity investors.
Market analysts are watching specific technical levels after the recent correction.
Gold has immediate support around ₹1,50,110 per 10 grams, while resistance is seen near ₹1,51,330. A sustained move above that level could bring ₹1,51,950 into focus, while a break below support could increase selling pressure.
For silver, support is placed around ₹2,31,320 per kg, with resistance near ₹2,35,615. A move above resistance could open the way towards ₹2,37,750, while a break below support could bring ₹2,29,160 into focus.
For retail buyers, the recent correction has brought gold and silver prices down from their earlier highs, but the market remains sensitive to global interest-rate expectations, currency movements and geopolitical developments.
The near-term direction of gold and silver prices in India is likely to depend on how investors balance safe-haven demand against pressure from higher US yields and a stronger dollar. With global economic data and central-bank policy remaining important market drivers, bullion prices are expected to remain volatile in the days ahead.