Gold Rates Crash Below ₹1,50,000 as Crude Oil Prices Surge

The gold market in India experienced a significant downturn on September 28, 2026, as MCX Gold Futures plummeted below ₹1,50,000 per 10 grams. The sharp intraday crash was triggered by a surge in crude oil prices globally, which has escalated the geopolitical conflict surrounding the Strait of Hormuz.

The US President Donald Trump's rejection of peace talks with Iran has led to a rise in crude oil prices, sparking concerns about inflation. This, in turn, has put pressure on gold as investors shift towards higher-yielding alternatives, making it a less attractive asset due to its non-yielding nature.

The MCX Gold Futures witnessed a decline of ₹3,214 (over 2%) to ₹1,47,667 per 10 grams, while the MCX Silver Futures dropped by ₹6,661 (over 3.4%) to ₹2,28,035 per kg. This crash has intensified market volatility and added additional pressure on investor sentiment and precious metal prices.

The global gold market also experienced a sharp decline, with international spot gold dropping over 2% to break below the critical $4,200 per ounce threshold. Precious metals ETFs tracked the spot market dump, with gold and silver ETFs tumbling up to 4% in morning trade.