Business & Finance
Gold Climbs 1% as Oil Prices Drop, Silver Falls Below ₹2 Lakh per Kg
Gold prices rose about 1% on Tuesday as lower oil prices lent support, while market participants awaited the U.S. Federal Reserve’s policy meeting for signals on the future path of interest rates. Spot gold climbed 0.9% to $4,051.78 per ounce at 8:29 pm IST, after touching a low of $3,987.14 earlier in the session. U.S. gold futures for December delivery rose 0.69% to $4,066.40 per ounce.
Silver prices plunged below ₹2 lakh per kg in the national capital for the first time in over ten months on Tuesday, while gold declined ₹500, as weakness in global bullion markets and a stronger dollar weighed on investor sentiment. Silver slumped ₹4,000 to ₹1.98 lakh per kg, inclusive of all taxes, its lowest level in 10 months, according to the All India Sarafa Association. The white metal had closed at ₹2.02 lakh per kg in the previous session and was last quoted at ₹1.98 500 per kg on December 16.
Gold of 99.9 % purity fell ₹500 to ₹1,45,800 per 10 grams, inclusive of all taxes, from Monday’s closing price of ₹1,46,300 per 10 grams. Gold of 22‑carat purity was priced at ₹13,530 per gram in Bengaluru at the close of trading on Tuesday, while 24‑carat gold stood at ₹14,760 per gram. Silver was priced at ₹2,08,000 per kg.
Gold prices in India edged higher on Tuesday, with 24‑carat gold trading at ₹1,42,910 per 10 grams, up ₹10 from ₹1,42,900 on Monday. The price of 22‑carat gold rose to ₹1,31,000 per 10 grams from ₹1,30,990, while 18‑carat gold remained unchanged at ₹1,07,180 per 10 grams. The latest rates follow a period of volatility over the past week. On October 20, 24‑carat gold stood at ₹1,46,230 per 10 grams before declining to ₹1,42,630 on October 23. Prices recovered marginally over the subsequent days, reaching ₹1,42,730 on October 24 and 25, before rising to ₹1,42,900 on October 26. The broader trend shows that 24‑carat gold remains ₹3,320 per 10 grams below its October 20 level. Over the same period, 22‑carat gold fell from ₹1,34,040 to ₹1,31,000, while 18‑carat gold declined from ₹1,09,670 to ₹1,07,180.
Gold prices in Delhi rose by ₹200 to ₹1,46,300 per 10 grams on Monday, supported by a weaker rupee and a modest recovery in global markets. Gold of 99.9 % purity had settled at ₹1,46,100 per 10 grams on Friday.
Addressing the recent price swings in precious metals, Kotak Neo’s Banerjee clarified that gold is currently tracking macroeconomic fundamentals rather than traditional safe‑haven demand. “In the very short term, gold and silver—especially gold—is acting not as a safe haven; it’s more acting as a play on the real interest rates on the dollar,” Banerjee, head of commodities research at Kotak Neo, told ANI.
Gold prices rose on Monday, rebounding from the previous session’s over three‑month low, as retreating oil prices tempered inflation concerns ahead of this week’s U.S. Federal Reserve meeting. Spot gold rose 0.6% to $4,018.81 per ounce by 11:43 am EDT (15:43 GMT) after hitting $3,975 on Friday, its lowest level since July 20. U.S. gold futures for December delivery rose 0.7% to $4,033.60 per ounce.
Gold and silver are expected to face fresh headwinds next week as surging crude oil prices revive inflation concerns, while the U.S. Federal Reserve’s policy decision could determine whether bullion rates stabilise or extend their downward trend, analysts said. The precious metals, already battered by elevated bond yields and a stronger dollar, will look to the Federal Reserve’s October 27‑28 meeting and its chair’s commentary for signals on whether interest rates could stay higher for longer.
The focus will also be on policy decisions from the European Central Bank and the Bank of Japan, along with U.S. durable goods orders, consumer confidence, Personal Consumption Expenditures inflation and third‑quarter GDP data. Eurozone inflation readings, developments around the U.S. mid‑term elections, Russia‑Ukraine peace talks and the West Asia conflict will also remain on the radar, they added.
Gold prices rose ₹200 to ₹1,46,300 per 10 grams in Delhi on Monday, supported by a weaker rupee and a modest recovery in overseas markets. The yellow metal of 99.9 % purity closed at ₹1,46,100 per 10 grams last Friday. Silver remained unchanged at ₹2,02,000 per kilogram, inclusive of all taxes, after three consecutive sessions of losses, according to local traders.
“Gold prices in the domestic market advanced on Monday, tracking a slight recovery in overseas markets as weak crude oil rates, a steady U.S. dollar, and lower benchmark Treasury yields provided support to bullion,” said Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities.
Gold climbed back above $4,000 on Monday, as softer oil prices eased some inflation concerns ahead of this week’s Federal Reserve policy meeting that could shed light on the future interest rate path. Spot gold rose 0.5% to $4,014.49 per ounce by 0924 GMT after hitting $3,975 on Friday, its lowest level since July 20. U.S. gold futures for December delivery rose 0.5% to $4,028.40 per ounce.
“This 4,000 level is seen by some as a buying opportunity. So we should eventually see slightly stronger purchases stepping in, because it has also, from a technical perspective, helped very well in the past,” said Giovanni Staunovo, a UBS analyst.
Gold is also finding support from lower oil prices today, Staunovo added, but upside remains limited by concerns that the Fed could continue hiking interest rates in December and again next year, even if it holds rates steady at this week’s meeting. Traders are pricing in a 9% chance of an interest‑rate hike on Wednesday, while expectations for a hike in December are at 80%, according to the CME’s FedWatch Tool.
Higher rates increase the opportunity cost of holding non‑yielding gold. Silver prices are near equilibrium levels and may receive support from recovering investor demand, but rallies are likely to be capped by a firm U.S. dollar and rising supply, a report said on Monday. The report from HSBC Global Investment Research said the silver market recorded a deficit of 140 million ounces in 2025. It forecasted that the shortfall will narrow sharply to 5 million ounces in 2026 before widening mildly to 12 million ounces in 2027.
“Moderating deficits help explain our view that prices are near equilibrium levels and may be supportive but do not augur for robust rallies,” the report said. Above‑ground stocks and recycling may eventually help cap sizable rallies and weigh on prices longer‑term.
Silver reached a record high of $121 per ounce on January 29, 2026, driven by record gold prices, supply tightness, and tariff, geopolitical and economic concerns, all of which fostered safe‑haven buying. The Middle East conflict triggered a flood into the USD, and high oil prices sparked concerns over tighter monetary policy as equities slumped.
“Gold prices will likely remain influential, and we are moderately positive on bullion, which should help sustain silver,” it said.
Global central bank decisions, fluctuations in crude oil prices, and changing economic conditions are expected to influence commodity prices in the short term, according to Anindya Banerjee, Head of Commodities Research at Kotak Neo.
In an exclusive interview with ANI News in Mumbai on Monday, Banerjee shared his views on precious metals, energy, base metals, and investment strategies for retail investors. Explaining the recent fluctuations in gold and silver prices, Banerjee said that gold is currently being influenced more by economic factors than by its traditional role as a safe‑haven investment. He explained that, in the short term, gold and silver prices, particularly gold, are responding mainly to changes in U.S. real interest rates and the strength of the U.S. dollar rather than investor fears or global uncertainty.
Gold prices rose ₹817 to ₹1,42,841 per 10 grams in futures trade, supported by firm demand in the spot market and fresh buying by traders. On the Multi Commodity Exchange (MCX), gold contracts for December delivery gained ₹817, or 0.58 percent, to trade at ₹1,42,841 per 10 grams, with a turnover of 811 lots. Analysts attributed the rise in gold futures to fresh positions built by market participants amid steady demand for the precious metal.