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

Gold prices in India declined on October 6, 2026, with both 24K and 22K gold rates dropping from the previous session. The IBJA-linked indicative retail selling rate for 999-fineness gold fell to ₹14,728 per gram, down from ₹14,820 per gram the day before. Similarly, the 22K gold rate dropped to ₹14,374 per gram from ₹14,464 per gram. Jewelry retailers like Tanishq, Malabar Gold & Diamonds, Kalyan Jewellers, and Joyalukkas also reported marginal declines in their 22K gold prices.

The drop in gold prices was driven by a stronger US dollar and higher US Treasury yields, which typically reduce demand for the precious metal. Gold, priced in US dollars, becomes more expensive for holders of other currencies when the dollar strengthens. Additionally, higher Treasury yields make interest-bearing assets more attractive compared to gold, which does not pay interest.

Despite these pressures, gold prices did not fall sharply due to changing expectations around the US Federal Reserve's interest-rate path. Recent US employment data suggests the Fed may delay raising interest rates, which provided some support to gold. Global gold prices also remained relatively resilient, with spot gold up 0.3% to around $4,152.04 per ounce, indicating that the decline in India's gold market was influenced more by local factors than a global sell-off.

For consumers looking to buy gold jewelry, the final price can vary based on factors like purity, city, making charges, GST, and retail pricing policies. Buyers are advised to check the same-day rate directly with jewelers before making a purchase. The near-term direction of gold will depend on the US dollar, Treasury yields, Federal Reserve policy expectations, and upcoming US economic data.