Domestic gold and silver prices suffered a sharp correction in Delhi and on the Multi Commodity Exchange, dropping by up to Rs 2,700 for gold and Rs 10,000 for silver. The selloff occurred despite gains in global bullion markets, driven by selling pressure, a firmer US dollar, and rising interest-rate expectations.
Precious metals took a beating in the domestic market as traders locked in profits following a recent rally. The pullback in India contrasted with an upward tick in global bullion trade, creating a distinct divergence between local selling pressure and overseas momentum.
Delhi and MCX Price Movements
In the national capital, gold of 99.9 percent purity depreciated by Rs 2,700 to settle at Rs 1,55,900 per 10 grams, inclusive of all taxes, according to local traders citing the close from the previous session at Rs 1,58,600 per 10 grams. Gold and silver prices fell sharply in the domestic market on Friday despite gains in global bullion markets, with traders attributing the correction to selling pressure after the recent rally, according to PTI on September 11, 2026 at 19:40 IST. Silver experienced an even steeper descent, tumbling by Rs 10,000 to reach Rs 2,34,600 per kg (inclusive of all taxes) compared to its prior close of Rs 2,44,600 per kg.
On the Multi Commodity Exchange, futures contracts reflected a similar downward trajectory at the start of the week on Monday, August 31. Gold futures for October delivery fell ₹2,045, or 1.31%, to ₹1.54 lakh per 10 grams on the MCX, while December silver futures declined ₹1,955, or 0.81%, to ₹2.40 lakh per kg as tracked in domestic futures trade.
Gold prices fall Rs 2,700; silver tumbles by Rs
Global Markets Diverge From Domestic Selling
The sharp domestic correction developed independently of overseas trends. In international trade, spot gold rose $49.82, or 1.15 percent, to $4,366.58 per ounce, while silver gained 2 percent to reach $64.77 per ounce. Globally, gold futures were down 0.51% at $4,432.51 an ounce, while silver fell 1.04% to $68.22 an ounce.
Despite occasional overseas recoveries, precious metals remain under sustained pressure. Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, noted that gold prices in the overseas trade recovered slightly but remained under pressure and are on track for a third consecutive weekly decline. Gandhi pointed to elevated crude oil prices reviving inflation concerns, while higher Treasury yields and rising rate-hike expectations continue to weigh on assets such as gold.
US Monetary Policy and Yields
Shifting expectations surrounding United States monetary policy are playing a central role in the global bullion correction, which has been linked to changing expectations around US monetary policy. Gaurav Garg, Head of Research at Lemonn, attributed the pressure to hawkish comments from Fed Chair Kevin Warsh at Jackson Hole, which have increased expectations of a September rate hike, with markets now pricing in a significantly higher probability of a rate increase.
Higher US yields and a firmer dollar tend to weigh on gold and silver because both metals do not offer regular interest income. Furthermore, a stronger dollar can also make dollar-denominated bullion more expensive for buyers in other currencies, while Garg noted that gold has extended its recent correction, and silver has also remained under pressure.
Gold, silver prices under pressure in India
Crude Oil and Inflation Pressures
Energy markets have added another layer of uncertainty to the global outlook. WTI crude has moved above $85 a barrel amid escalating US-Iran tensions and concerns over supply disruptions around the Strait of Hormuz.
Higher crude prices could add to inflationary pressures globally, which in turn could influence expectations around the pace of interest-rate cuts or hikes and keep markets sensitive to US economic data and central bank signals.
Outlook for Indian Consumers and Jewellers
Market participants view the current downturn as a temporary consolidation rather than a complete reversal of the broader trend, as the fall in prices does not necessarily mean that gold’s broader trend has reversed. Colin Shah, managing director of Kama Jewelry, described the recent decline as a possible phase of consolidation after the sharp rise in gold prices, attributing the immediate weakness to profit-taking and softer global cues.
For Indian consumers, the correction comes ahead of the festive and wedding-buying season, and lower prices could provide some relief to jewellery buyers, although bullion prices remain volatile and can move sharply with global cues. For jewellers, a correction can also make inventory restocking relatively more attractive. Domestic prices will continue to be influenced by three factors that are particularly important in the near term: US interest-rate expectations around the September Fed decision, the dollar and US yields, and the rupee-dollar exchange rate, with the rupee around ₹95.56 to the US dollar as global bullion movements and currency fluctuations continue to make domestic prices volatile.
