Gold Prices Drop in India Amid Stronger Dollar and Higher Treasury Yields

Gold prices in India have taken a dip on October 6, 2026, with both 24K and 22K gold rates declining from the previous session. The IBJA-linked indicative retail selling rate for 999-fineness gold dropped to ₹14,728 per gram, or ₹1,47,280 per 10 grams, compared to ₹14,820 per gram on October 5. Similarly, the indicative 22K gold rate fell to ₹14,374 per gram, or ₹1,43,740 per 10 grams, down from ₹14,464 per gram.

MCX gold futures also opened lower on Tuesday, with December 2026 gold futures around ₹1,49,901 per 10 grams, down about ₹415. The decline comes amid a stronger US dollar and elevated US Treasury yields, which typically weigh on the precious metal. However, changing expectations around the US Federal Reserve’s interest-rate path are limiting the extent of the drop.

Jewellery prices have also seen a marginal decline. For instance, the reported 22K gold rate at Tanishq was ₹13,705 per gram, compared to ₹13,720 per gram previously. Malabar Gold & Diamonds, Kalyan Jewellers, and Joyalukkas were reported at around ₹13,660 per gram for 22K gold, down from ₹13,675 per gram earlier.

The primary factors behind the decline include the stronger US dollar, which makes gold relatively more expensive for holders of other currencies, and higher US Treasury yields, which increase the opportunity cost of holding gold. Despite these pressures, expectations around the Federal Reserve’s future rate decisions are providing some support to gold prices. Global gold prices have remained relatively resilient, with spot gold at around $4,152.04 per ounce, up 0.3% in the latest update.