Gold Nears ₹1.49 Lakh as Fed Rate Hike Hopes Dim and Geopolitical Tensions Rise
On October 5, 2026, gold prices in India hovered near the ₹1.49 lakh-per-10-gram mark on the MCX, while silver prices remained highly volatile. The fluctuations in gold and silver markets were driven by a mix of global economic indicators, including Federal Reserve rate expectations, US dollar movements, crude oil prices, and geopolitical tensions between the US and Iran.
In key cities like Delhi, Mumbai, and Chennai, the price of 24K gold stood around ₹14,900 per gram, with 22K gold priced at approximately ₹13,675 per gram. Retail prices can vary due to GST, making charges, and other local factors. For example, in Delhi, the 24K gold rate was reported at ₹1,49,320 per 10 grams, slightly lower than the previous day's ₹1,49,330.
The price movements were influenced by several factors, including the reduced likelihood of an October Fed rate hike, which dropped to around 18 percent. However, a stronger US dollar limited gold's upside by making dollar-denominated gold more expensive for international buyers. Additionally, geopolitical risks, particularly tensions involving the US and Iran, contributed to gold's safe-haven appeal.
Silver prices also experienced significant volatility, with MCX December futures trading around ₹2,26,393 per kg during early trading. Crude oil prices declined, easing some inflation concerns, which indirectly impacted gold and silver markets. Buyers were advised to check purity, per-gram rates, making charges, and the complete invoice before purchasing gold jewellery, as the final price may include additional costs.