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Gold, Silver Prices Drop: What's Weighing on Indian Markets?
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CNBC TV18•21-09-2026, 14:38
Gold, Silver Prices Drop: What's Weighing on Indian Markets?
- •Gold fell ₹773 per 10 grams and silver dropped ₹2,024 per kg in domestic futures trade on Monday, September 21, due to softer spot demand and market positioning shifts.
- •Globally, gold futures were down 0.53% at $4,355.59 an ounce, while silver traded 0.20% lower at $66.12 an ounce.
- •The decline is attributed to investors reassessing US interest rates, bond yields, and the dollar, with hawkish Fed commentary and inflation concerns keeping yields and the dollar firm.
- •Domestic prices are also influenced by the rupee's movement against the dollar, with a weaker rupee potentially supporting local bullion prices.
- •Despite volatility, physical demand in India remains steady, though buyers are more selective; festive season buying is expected to increase gradually, with consumers adjusting purchase timing or weight.
Key Questions Answered
Gold and silver prices dropped in domestic futures trade due to softer spot demand, a shift in market positioning, and investor reassessment of US interest rates, bond yields, and a firm dollar driven by hawkish Federal Reserve commentary.
On the Multi Commodity Exchange (MCX), October gold futures fell by ₹773 to ₹1.53 lakh per 10 grams, while December silver futures declined by ₹2,024 to ₹2.39 lakh per kg.
Physical demand remains steady but measured as buyers and retail jewellers watch prices closely and become more selective. Consumers are adjusting the weight, design, or timing of purchases, and some may spread out their buying instead of making large purchases all at once.
