Gold, Silver Prices Slide Sharply in India as Fed Rate-Hike Bets and Oil Surge Hit Bullion

Gold and silver prices tumbled sharply across India today, even as Ganesh Chaturthi celebrations typically drive steady footfall for idols and small gift purchases, with both metals recording one of their steepest single-day declines in recent weeks.

The Numbers

On the Multi Commodity Exchange, gold futures fell 1.72% to settle at ₹150,150 per 10 grams, closing the session exactly at its intraday low after touching a high of ₹151,256 earlier in the day. Silver fared even worse, dropping 1.99% to ₹230,300 per kilogram. Internationally, Comex gold slid 1.94% to $4,323.50 an ounce, while Comex silver fell a sharper 2.63% to $63.48 an ounce. Retail 24-karat gold in Indian cities was quoted around ₹150,750-₹153,000 per 10 grams depending on the city, with Chennai and Mumbai at the higher end and Delhi at the lower end of the range.

The fall wiped out most of the gains gold had built up over the preceding week. Over the past month, gold is now down close to 2.65% and silver around 3%, even though both metals remain sharply higher on a one-year view, with gold up more than 37% and silver up nearly 79% compared to a year ago.

What Is Driving the Fall

The sell-off tracks a broader risk-off move in global bullion markets rather than any India-specific trigger. Hotter-than-expected US inflation data released on Friday, with the August Consumer Price Index rising 0.4% on the month and 3.4% on the year, has pushed futures-implied odds of a Federal Reserve rate hike this week to roughly 87%. Higher rates make non-yielding assets like gold and silver less attractive relative to interest-bearing instruments, and a firmer US dollar alongside climbing Treasury yields compounded the drag on both metals through the session.

Crude oil added to the pressure. Prices jumped toward multi-month highs after Saudi Arabia was forced to shut a key pipeline bypassing the Strait of Hormuz following drone attacks, an inflationary jolt that reinforced expectations of a more hawkish Fed stance. Markets have effectively read the oil shock as fresh fuel for inflation, which in turn strengthens the case for tighter monetary policy and weighs further on bullion.

What It Means for Buyers

For Indian households, a one-day fall of this size can translate into a marginally better entry point than buying at last week's highs, particularly for festive and wedding-season purchases in the weeks ahead. That said, with the Federal Reserve's policy decision still pending this week and Middle East tensions unresolved, further volatility in both directions cannot be ruled out. Market watchers typically advise spreading purchases across a few sessions rather than trying to time the exact bottom, especially in a market this sensitive to global rate and geopolitical cues.

Readers tracking daily movements can check the latest gold rate today and silver rate on The Financial Buddy for city-wise updates.

This is an original summary based on public reporting. See our editorial policy for how we source, write, and correct our stories.