Gold and silver prices in India fell sharply on Monday, August 31, 2026, extending a late-week decline driven by signals from Federal Reserve leadership over potential interest rate hikes. In international markets, Comex gold futures for December delivery dropped 3.2 per cent to close the week at $4,680.6 per ounce.
Domestic Price Correction Across Indian Markets
Precious metal prices in India retreated after a two-day rally on the Multi Commodity Exchange, putting physical bullion under renewed pressure as traders evaluated global economic indicators. In the domestic retail market, 24-karat gold fell by Rs 147 per gram to Rs 15,677, while 22-karat gold declined by Rs 135 to Rs 14,370 per gram according to data published for August 31, 2026. The losses meant that 24K gold dropped by Rs 43,600 per 100 grams in just a 48-hour window.
By the end of the week, physical gold rates across major metropolitan centers reflected the broader downward correction. Standard 22-karat gold stood at Rs 1,14,048 per 8 grams in Delhi, while pure 24-karat gold reached Rs 1,24,408 for the same quantity. In Mumbai, Hyderabad, and Chennai, standard 22-karat gold was priced at Rs 1,13,928 per 8 grams, with 24-karat gold resting at Rs 1,24,288 as reported by market trackers. Meanwhile, domestic silver prices remained steady at Rs 255 per gram, translating to Rs 2,55,000 per kilogram.
Gold rates in India continued their decline on Monday, August 31, extending the fall seen at the end of last week. Today, the price of 24K gold is Rs 15,677 per gram, down by Rs 147. For 8 grams, the rate stands at Rs 1,25,416, lower by Rs 1,176. The price of 10 grams is Rs 1,56,770, down by Rs 1,470, while 100 grams costs Rs 15,67,700, a decline of Rs 14,700. The price of 22K gold is Rs 14,370 per gram, falling by Rs 135. The rate for 8 grams stands at Rs 1,14,960, down by Rs 1,080. For 10 grams, 22K gold is priced at Rs 1,43,700, lower by Rs 1,350, while 100 grams costs Rs 14,37,000, down by Rs 13,500. Today, 18K gold is priced at Rs 11,785 per gram, down by Rs 83. The price for 8 grams is Rs 94,280, a decline of Rs 664. For 10 grams, the rate stands at Rs 1,17,850, down by Rs 830, while 100 grams is priced at Rs 11,78,500, lower by Rs 8,300.
Meanwhile, silver prices remained unchanged in India, priced at Rs 255 per gram, or Rs 2,55,000 per kilogram, maintaining the same level as the previous session.
Global Markets and US Economic Data Expectations
International bullion valuations faced simultaneous headwinds as investors turned their attention toward upcoming U.S. employment figures. Spot gold traded near $4,475.75 per ounce, whereas U.S. gold futures for December delivery decreased by 0.4% to $4,522.60. Among other precious metals, spot silver slipped 0.1% to $66.88 per ounce, platinum dropped 0.3% to $1,820.18, and palladium fell 0.4% to $1,415.37.
Market participants monitored labor statistics closely after separate reports indicated a marginal increase in Americans filing new unemployment claims while layoffs stayed low, pointing to stable labour market conditions. Financial analysts noted that markets are currently pricing in a 62% probability of a U.S. interest rate hike this month, according to the CME FedWatch Tool. Gold is traditionally viewed as a hedge against inflation, but higher interest rates increase the opportunity cost of holding the non-yielding asset.
Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, noted that MCX gold had fallen from around Rs 1.63 lakh to Rs 1.56 lakh per 10 grams, resulting in a decline of more than Rs 6,000 from the weekly peak, and added that in international markets, Comex gold futures for December delivery declined $150.7, or 3.2 per cent, to end the week at $4,680.6 per ounce.
Geopolitical Pressures and Inflation Concerns
Beyond macroeconomic data, geopolitical tensions provided a volatile backdrop for commodity trading. Markets reacted to escalating friction in the Middle East with fears of renewed escalation after the US and Iran exchanged their biggest barrage since July. Washington struck Iran’s southern coast, while Tehran launched attacks on US bases across the region. Federal Reserve Chair Kevin Warsh signalled that interest rate hikes could be required to contain inflation.
Analyst Outlook and Trading Support Levels
Commodity experts anticipate continued price swings driven by fluctuations in crude oil prices and the dollar index, as well as ahead of the U.S. jobs data. According to Manoj Kumar Jain of Prithvi Finmart, gold and silver prices are expected to remain volatile in today’s session.
On the Multi Commodity Exchange, MCX silver futures for September 2026 delivery were down Rs 1,500 to Rs 2,40,858 per kg, and gold futures for October 2026 delivery declined by Rs 2,100 to Rs 1,55,010 per 10 grams. Gold and silver extended gains for two straight sessions before Friday’s decline.
