Gold prices dip amid West Asia tensions and maritime instability

On October 6, 2026, gold prices in India experienced a slight decline across all major carats. The price of 24-carat gold dropped by Rs 16 to Rs 14,902 per gram, while 22-carat gold fell by Rs 15 to Rs 13,660 per gram. Similarly, 18-carat gold saw a decrease of Rs 12, settling at Rs 11,177 per gram. These changes reflect a broader trend influenced by geopolitical tensions and recent policy shifts.

The decline in gold prices comes amid heightened tensions in West Asia, particularly with Yemen's military recapturing the strategic port city of Mocha and escalating threats against Mecca and Medina. These developments have triggered the Mecca Defence Pact, uniting Türkiye and Pakistan to reinforce Saudi Arabia’s defenses. Additionally, the UK’s expulsion threat against Israeli diplomats over the closure of the British consulate in East Jerusalem has added to regional instability.

The collapse of a 60-day maritime armistice brokered by the US and Iran in mid-June 2026 has further exacerbated the situation. The failure of this agreement has led to renewed missile strikes and increased maritime risks, driving a safe-haven rally in precious metals. This rally, combined with recent import duty revisions and foreign exchange instability, has contributed to the fluctuations in domestic and spot gold prices.

City-wise, gold prices vary slightly, with Delhi and Vadodara seeing marginally higher rates for 24-carat gold at Rs 14,917 per gram. In contrast, other major cities like Mumbai, Kolkata, and Bangalore maintain the standard rate of Rs 14,902 per gram for 24-carat gold.