Gold Prices Dip in India Amid Geopolitical Tensions and Stronger US Dollar
Gold prices in India dipped on October 6 amid ongoing geopolitical tensions between the United States and Iran. US President Donald Trump’s announcement of moving long-range bombers from the United Kingdom due to perceived threats added to global market uncertainty. Despite these tensions, international gold prices remained stable, with gains limited by a stronger US dollar and higher Treasury yields. Spot gold fell slightly by 0.2% to $4,133.59 an ounce, while US gold futures for December delivery declined by 0.02% to $4,161.50.
Retail gold prices in India varied across major cities. In New Delhi, 24-carat gold was priced at ₹148,850 per 10 grams, while 22-carat gold stood at ₹136,440. Mumbai saw slightly higher rates, with 24-carat gold at ₹149,100 and 22-carat gold at ₹136,675 per 10 grams. Other cities like Bengaluru, Kolkata, Hyderabad, and Chennai also reported fluctuations in gold prices, with Chennai recording among the highest rates at ₹149,620 for 24-carat and ₹137,152 for 22-carat gold.
Silver prices also remained high across major cities, with Delhi quoting ₹224,900 per kilogram and Mumbai at ₹225,290. Bengaluru, Kolkata, Hyderabad, and Chennai reported silver prices ranging from ₹225,140 to ₹226,090 per kilogram. On the Multi Commodity Exchange (MCX), gold futures were trading marginally lower at around ₹149,370 per 10 grams, while silver futures declined by about 0.33% to ₹225,700 per kilogram in morning trade.
Internationally, gold prices remained steady as the stronger US dollar and elevated Treasury yields limited gains. Market participants were also evaluating expectations for the Federal Reserve’s interest-rate policy. Domestic bullion prices in India are influenced by international precious-metal prices, the rupee-dollar exchange rate, import costs, and local demand, with the upcoming festive season potentially affecting retail prices in the coming weeks.