Gold and silver prices remained under pressure on Thursday, September 24, as a stronger US dollar and changing expectations around interest rates kept investors cautious. Gold was trading at ₹1,51,070 per 10 grams, while silver stood at ₹2,34,650 per kg in the domestic market.
The precious metals market has been volatile in recent sessions after a strong run in gold and silver prices. Investors are closely watching global interest rates, the US dollar, crude oil prices and geopolitical developments for clues about the next move in bullion.
Gold prices are particularly sensitive to US monetary policy. When interest rates and bond yields rise, gold can become less attractive because it does not provide regular interest income. A stronger dollar can also put pressure on gold because the metal is traded internationally in US dollars.
Retail gold rates remained high across major Indian cities despite the recent movement in global prices. The price varies between cities because of local taxes, transportation costs, demand and other charges.
In Mumbai, 24-carat gold was around ₹1,51,380 per 10 grams, while 22-carat gold was about ₹1,38,765 per 10 grams.
In Delhi, 24-carat gold was priced at around ₹1,51,120 per 10 grams, while 22-carat gold stood at about ₹1,38,527.
In Bengaluru, 24-carat gold was around ₹1,51,450 per 10 grams and 22-carat gold was about ₹1,38,829.
Kolkata recorded 24-carat gold at around ₹1,51,130 per 10 grams, while 22-carat gold was priced at about ₹1,38,536.
Chennai continued to see relatively higher rates, with 24-carat gold at around ₹1,51,770 per 10 grams and 22-carat gold at about ₹1,39,123. In Hyderabad, 24-carat gold was around ₹1,51,570 and 22-carat gold stood at approximately ₹1,38,939.
The retail price paid by consumers can be higher than the quoted market rate because jewellers may add making charges, GST and other applicable costs.
Silver prices also remained elevated despite the recent decline. Domestic silver futures were trading around ₹2,34,650 per kg.
Silver has been attracting strong investor interest because it is used not only as a precious metal but also in industries such as electronics, solar energy and manufacturing. This industrial demand can make silver prices more sensitive to expectations about global economic growth.
Retail silver prices also varied across cities. Mumbai’s silver rate was around ₹2,34,340 per kg, while Delhi was around ₹2,33,940. Chennai recorded a rate of about ₹2,34,710 per kg, while Hyderabad was around ₹2,34,400.
The difference between futures prices and retail rates is normal because the two reflect different markets, timings and pricing factors.
The biggest factor currently affecting bullion is the US dollar and global bond yields.
The US 10-year Treasury yield has moved higher, making interest-bearing assets more attractive to investors. When bond yields rise, investors often reassess their exposure to gold, which does not pay interest or dividends.
The stronger dollar has added to the pressure. Since gold is priced globally in dollars, a stronger US currency can make the metal more expensive for buyers using other currencies.
However, geopolitical uncertainty continues to provide some support to gold. The precious metal is traditionally seen as a safe-haven asset during periods of uncertainty, which can limit the impact of short-term selling.
Crude oil prices are another factor that investors are watching closely. Brent crude recently moved above $102 a barrel, although prices eased somewhat on Thursday.
Oil prices have been volatile because of developments in West Asia, including uncertainty around the US-Iran conflict and the movement of oil through the Strait of Hormuz.
Higher crude prices can raise inflation concerns in major economies. That, in turn, can influence expectations about interest rates and affect gold prices.
For India, crude oil is especially important because the country imports a large portion of its oil requirements. Higher oil prices can increase the import bill and put pressure on the rupee.
The domestic gold market will continue to take cues from international prices, the rupee-dollar exchange rate and global interest-rate expectations.
A weaker rupee can make imported gold more expensive in India even if international gold prices remain unchanged or fall slightly. This means Indian consumers may not always see the same price movement as investors in the international market.
Gold and silver prices can also move quickly during periods of geopolitical uncertainty. Investors therefore remain cautious about making decisions based only on one day’s price movement.
For consumers planning to buy jewellery, the quoted gold rate is only one part of the final bill. Making charges, GST and other applicable costs can significantly affect the amount paid at the jewellery counter.
With gold at around ₹1.51 lakh per 10 grams and silver near ₹2.35 lakh per kg, both metals remain at elevated levels. The next major price moves are likely to depend on the direction of the US dollar, bond yields, crude oil prices and global interest-rate expectations.