Gold Prices Rise Amid Festive Demand as Fed Rate Hike Impact Fades

The gold rate in India has seen a steady increase over the past week, reaching ₹15,813 per gram for 24-karat gold as of September 21, 2026. This represents a gain of ₹230 per gram since the previous Monday, according to the India Bullion and Jewellers Association (IBJA) benchmark.

The increase in gold prices is attributed to several factors, including the Federal Reserve's decision to raise its benchmark rate by 25 basis points on September 16. However, this move was expected to have a negative impact on gold prices due to higher borrowing costs and a stronger dollar.

Despite initial concerns, the gold market has held firm, with spot gold recovering above $4,300 per ounce within two sessions of the rate hike. This resilience is attributed to several factors, including central bank demand, energy-cost premiums embedded in mining economics, and the de-dollarisation trade.