Gold and silver prices moved higher in India on Monday, October 19, as renewed concerns over tensions between the United States and Iran supported demand for precious metals. Gold futures on the Multi Commodity Exchange (MCX) rose to ₹1,48,580 per 10 grams, while silver futures climbed to ₹2,12,770 per kilogram in early trade.
The gains come amid uncertainty over developments in the Middle East and their possible impact on global financial markets. Investors often turn to gold during periods of geopolitical tension, viewing the metal as a safe-haven asset. Silver also benefited from the positive sentiment, although its prices are influenced by industrial demand as well as investment activity.
For Indian households planning jewellery purchases, the latest movement is worth tracking. Even a modest increase in gold prices can make a noticeable difference to the cost of ornaments, particularly during the festive and wedding seasons. Buyers should also remember that retail jewellery bills include additional costs beyond the quoted price of the metal.
Retail gold prices varied across major Indian cities on Monday. In Mumbai, 24-karat gold was priced at ₹1,48,370 per 10 grams, while 22-karat gold stood at ₹1,36,006.
In Delhi, 24-karat gold was available at ₹1,48,120 per 10 grams, compared with ₹1,35,777 for 22-karat gold. Bengaluru recorded a 24-karat gold rate of ₹1,48,490 and a 22-karat rate of ₹1,36,116 per 10 grams.
Chennai reported one of the highest gold prices among the cities covered, with 24-karat gold at ₹1,48,810 per 10 grams and 22-karat gold at ₹1,36,409. In Kolkata, 24-karat gold was priced at ₹1,48,180, while the 22-karat rate stood at ₹1,35,832.
Hyderabad recorded a 24-karat gold rate of ₹1,48,610 per 10 grams and a 22-karat rate of ₹1,36,226.
The difference between 24-karat and 22-karat gold comes down to purity. While 24-karat gold is nearly pure, 22-karat gold contains a higher proportion of other metals, making it more suitable for many types of jewellery.
Silver prices also advanced, with MCX silver futures reaching ₹2,12,770 per kilogram in early trade. Retail prices differed across cities, reflecting local market conditions and pricing practices.
Chennai recorded the highest silver rate among the six cities at ₹2,13,220 per kilogram. Hyderabad followed at ₹2,12,940, while Bengaluru reported ₹2,12,770.
In Mumbai, silver was priced at ₹2,12,610 per kilogram. The rate stood at ₹2,12,320 in Kolkata and ₹2,12,240 in Delhi.
Silver has a wider range of uses than jewellery alone. It is used in investment products, ornaments and household articles, as well as in industries such as electronics and solar energy. This combination means silver prices can respond to safe-haven demand and changes in industrial activity.
Geopolitical uncertainty remains an important factor influencing precious metal prices. Concerns over a possible escalation in tensions between the United States and Iran have encouraged investors to monitor gold and silver closely.
Gold prices are also sensitive to expectations about US interest rates and movements in the dollar. When investors expect interest rates to fall, gold can become more attractive because the opportunity cost of holding a non-interest-bearing asset declines. A stronger US dollar, however, can make gold more expensive for buyers using other currencies and weigh on international demand.
For India, the rupee-dollar exchange rate is particularly important. The country imports much of its gold, so a weaker rupee can increase domestic prices even when international bullion rates remain steady. Import costs, taxes and local demand can also influence retail rates.
Silver has additional price drivers because of its industrial applications. Changes in manufacturing activity and demand from sectors such as solar power and electronics can affect its market outlook.