Gold Prices Decline in India Amid Ongoing Correction and Higher US Interest Rates

Gold and silver prices have declined in India's domestic bullion market due to ongoing correction. According to the India Bullion and Jewellers Association (IBJA), 24-carat gold fell by around ₹1,205 per 10 grams, while silver declined by ₹2,412 per kilogram on September 22.

The recent drop in prices is consistent with weakness in international bullion markets. Spot gold was down about 0.6% at around $4,319 per ounce, while silver was down 1.1% at around $65.28 an ounce, as reported by Reuters.

Higher US interest rates have been a significant factor contributing to the decline in gold prices. The US Federal Reserve raised its benchmark interest-rate target by 25 basis points to 3.75%-4% on September 16, citing elevated inflation and the need for continued monetary policy tightening.

Bullion markets are also influenced by geopolitical tensions and economic uncertainty, which can support demand for gold as a traditional hedge against uncertainty. However, despite recent declines, gold remains significantly higher than its level at the end of 2025, with a rise of roughly ₹19,000 over the period.