Gold and silver prices moved lower in India on Wednesday, October 7, as investors turned cautious ahead of the US Federal Reserve’s latest meeting minutes and tracked a stronger dollar. The decline comes after precious metals had remained elevated in recent sessions, with gold still hovering close to the ₹1.50 lakh mark and silver near ₹2.27 lakh.
On the Multi Commodity Exchange, gold futures were trading around ₹1,49,780 per 10 grams, down about 0.33%, while silver futures were at ₹2,26,410 per kg, lower by around 0.52% in morning trade.
The latest movement reflects a market caught between strong safe-haven demand and pressure from monetary policy expectations. Globally, spot gold fell as the US dollar strengthened, making dollar-denominated bullion more expensive for investors holding other currencies. Traders are also waiting for the minutes of the Federal Reserve’s September meeting for clues about the direction of US interest rates.
A stronger dollar and higher interest rates typically create pressure on gold because the precious metal does not generate interest income. When investors expect rates to remain high, assets offering yields can become more attractive compared with non-yielding gold.
Spot gold was down around 0.8% at $4,130.37 an ounce, while US gold futures declined about 0.7% to $4,157.00. Silver also weakened in international markets, falling around 1% to $61.12 an ounce.
The domestic bullion market, however, remains at historically elevated levels. Benchmark gold was quoted at ₹1,49,780 per 10 grams and silver at ₹2,26,410 per kg. Retail prices vary across cities depending on local demand, taxes, logistics and jeweller-specific pricing.
In Delhi, 24-carat gold was around ₹1,49,280 per 10 grams, while 22-carat gold was priced at about ₹1,36,840. In Mumbai, 24-carat gold stood at approximately ₹1,49,540 and 22-carat gold at ₹1,37,078 per 10 grams.
Bengaluru recorded 24-carat gold at about ₹1,49,620 per 10 grams and 22-carat gold at ₹1,37,152. In Kolkata, the corresponding rates were around ₹1,49,340 and ₹1,36,895. Hyderabad saw 24-carat gold at ₹1,49,780 and 22-carat gold at ₹1,37,298. Chennai remained among the higher-priced markets, with 24-carat gold at around ₹1,49,940 and 22-carat gold at ₹1,37,445 per 10 grams.
Silver prices also differed across cities. The metal was quoted at around ₹2,25,440 per kg in Delhi, ₹2,25,830 in Mumbai, ₹2,25,610 in Bengaluru, ₹2,25,700 in Kolkata, ₹2,25,790 in Hyderabad and ₹2,26,660 in Chennai.
The difference between benchmark and retail prices is important for consumers. Retail gold rates can include GST, making charges and other costs that do not form part of the underlying bullion price. In India, purchases of physical gold attract 3% GST on the value of the metal, while jewellery making charges attract a separate 5% GST.
The market is also entering an important period for physical demand. The approach of the festive season traditionally supports gold purchases in India, particularly jewellery buying. However, the exceptionally high prices could make consumers more selective and encourage some buyers to postpone purchases or opt for lighter jewellery.
Analysts are therefore watching both international monetary policy and domestic demand closely. According to market levels cited by analysts, MCX gold has support around ₹1,49,650-₹1,49,100, while resistance is seen around ₹1,50,800-₹1,51,350. For silver, support is placed near ₹2,25,500-₹2,24,000, with resistance around ₹2,28,800-₹2,31,000.
The immediate trigger for global bullion markets is likely to be the Federal Reserve minutes. Recent US economic data has reduced expectations of a rate hike in October, although markets continue to watch the possibility of another increase later in the year. Any change in expectations could quickly influence the dollar, US Treasury yields and precious metals.
Geopolitical uncertainty is another factor keeping gold supported despite the short-term decline. Developments around the Middle East and oil markets could increase demand for traditional safe-haven assets if tensions intensify. At the same time, any sustained rise in oil prices could add to inflation concerns and complicate the global interest-rate outlook.
For investors, Wednesday’s decline does not necessarily signal a broader reversal in the precious-metals market. Gold and silver remain highly sensitive to movements in the dollar, bond yields, central-bank policy and geopolitical developments. Traders are likely to remain cautious until there is greater clarity on the Fed’s next steps.
With gold still close to ₹1.50 lakh per 10 grams and silver above ₹2.25 lakh per kg, the precious-metals market remains firmly in focus. The next major moves could depend less on domestic demand alone and more on how global investors interpret the Federal Reserve’s policy direction.