Precious Metal Prices Plunge Amid Global Market Concerns

On September 28, 2026, precious metal prices saw a notable drop in Indian markets, following a steep fall in international rates. Gold prices exhibited slight variations across major cities in India, which were influenced by local market conditions. The indicative price for 24-carat gold was reported between Rs 1,50,992 and Rs 1,51,477 per 10 grams in cities such as Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Jaipur, and Kolkata. In comparison, the price for 22-carat gold ranged from approximately Rs 1,38,309 to Rs 1,38,753 per 10 grams, with Chennai exhibiting the highest rate at Rs 1,51,477 per 10 grams.

Silver also faced a decline, with prices hovering around Rs 2.33 lakh per kilogram across major cities. The price variations were relatively minor, indicating that fluctuations in silver rates were primarily influenced by broader national and international market factors, rather than significant differences at city levels.

R Ponmudi, Chief Executive Officer at the online trading firm Enrich Money, provided insights into the situation, stating, "Inflation concerns and the lack of a resolution to the US-Iran conflict continue to provide a broader support backdrop for bullion, but near-term pressure from the dollar, Treasury yields and expectations for the Federal Reserve’s rate path is dominating price action." He noted that a sustained move above $4,300 would be necessary to stabilise gold prices, while a decline below $4,200 could expose the metal to further risks, potentially falling towards the $4,100 level.

In India, there was a sharp decline in trading as gold prices on the Multi Commodity Exchange dropped significantly, while silver recorded an intraday decline as well. This shift represents a reversal from the previous bullish trends observed in precious metals, highlighting increased market volatility. Ponmudi mentioned, "A weaker rupee provides only a partial cushion to domestic gold prices, with a decisive break below Rs 148,000 indicating further potential decline toward Rs 146,000."

Internationally, gold and silver also fell on the same date. Spot gold decreased by over 2%, while silver experienced a sharper decline. The global downturn in the precious metal market has been attributed to heightened concerns regarding inflation, increased oil prices, rising bond yields, and expectations that the Federal Reserve may maintain higher interest rates for an extended period.

The performance of gold and silver is generally inversely related to the strength of the US dollar and Treasury yields; therefore, a stronger dollar typically diminishes the appeal of non-interest-bearing assets such as gold and silver. Despite the decline on September 28, gold prices remain historically high, with silver demonstrating greater day-to-day volatility. The direction of precious metals in the upcoming period will likely depend on US monetary policy expectations, fluctuations in the dollar and bond yields, movements in crude oil prices, geopolitical developments, and investor demand for safe-haven assets.