Business & Finance
Gold Prices Dip in India Amid Fed Rate Uncertainty and Middle East Tensions
By Aanya Mehta
Gold prices in India eased on September 8, 2026, with 24 carat gold trading at Rs 15,535 per gram, according to data from Good Returns. This marks a decline of Rs 186 compared to the previous day. Similarly, 22 carat gold fell by Rs 110 to Rs 14,240 per gram, while 18 carat gold dropped Rs 90 to reach Rs 11,651 per gram.
Rajeev Sharan, Head of Research at Brickwork Ratings, attributed the recent softness in gold prices to a stronger rupee, supported by healthy FCNR(B) deposit inflows, which typically keeps domestic gold prices restrained even when global prices remain stable. Sharan noted that gold prices are expected to remain under pressure over the next two weeks.
A major factor influencing the market is the upcoming US Federal Reserve rate decision scheduled for September 16. Following hawkish remarks by Fed Chair Kevin Warsh at the Jackson Hole symposium, market opinion is divided over whether the Fed will raise interest rates by a quarter point or maintain the current range of 3.50 to 3.75 percent.
Meanwhile, geopolitical tensions in the Middle East continue to influence global markets. According to Al Jazeera, Qatar's Foreign Ministry spokesperson Mohammed Al-Ansari warned that reopening the Strait of Hormuz is essential, cautioning that the ongoing crisis could lead to a global industrial catastrophe. Data from Kpler shows that daily transits through the strait have fallen to an average of just 10 commodity vessels over the past 10 days, the lowest level since May, following strikes on oil tankers by the United States and Iran.
Hisham Al-Omeisy, senior Yemen adviser at the European Institute of Peace, told Al Jazeera that a new counteroffensive by Yemen's government against Houthi forces has effectively ended the 2022 ceasefire, further intensifying regional instability. A 60-day ceasefire brokered by Washington and Tehran in mid-June 2026 had briefly paused hostilities and aimed to secure key maritime trade routes. However, continued missile strikes and threats against merchant vessels caused the truce to collapse, prompting both sides to resume military operations.
As diplomatic efforts broke down, volatility in global energy markets pushed investors toward gold as a safe haven asset. This shift has been mirrored in domestic markets, where gold prices in India have moved in tandem with international spot rates, import duty changes, and currency fluctuations.