Gold Steady Silver Drops as Fed Rate Hike and Geopolitics Weigh on Markets
On October 5, 2026, gold prices in India remained stable despite fluctuating international rates. The 24K gold price stood at ₹14,918 per gram nationwide, while 22K and 18K gold were priced at ₹13,675 and ₹11,189 per gram, respectively. In Delhi, prices were slightly higher, with 24K gold at ₹14,933 per gram, 22K at ₹13,690, and 18K at ₹11,204. International spot gold hovered around $4,160 per ounce, with US gold futures trading at $4,188.70, reflecting conflicting market trends.
Silver prices in India experienced a significant drop, falling by ₹5,000. Silver was quoted at ₹235 per gram or ₹2,35,000 per kilogram. The decline was attributed to factors such as the anticipated US interest rate hike, surging oil prices, and geopolitical tensions involving Trump and Iran. Analysts noted that while weak US economic data could make gold a favorable investment, a strong US dollar might make it more expensive for international buyers.
The short-term movement of gold prices is expected to be influenced by US interest rate expectations and the dollar's strength. Weaker economic data in the US could lead to lower interest rates, benefiting non-interest-bearing gold. However, a stronger dollar might cap any potential appreciation. Silver is anticipated to be more volatile due to its industrial applications in electronics, solar power, and automotive sectors.
Experts advise buyers to check the purity of gold before comparing prices and to separate making charges from the base metal price. Comparing prices from multiple jewellers and considering a staggered buying approach can help mitigate risks associated with gold's price volatility.