Gold prices experienced a sharp reversal on Wednesday, September 9, with 24-karat gold crashing ₹10,400 to ₹1.54 lakh per 10 grams after declining ₹10,400 in the previous session. According to The Hindu BusinessLine, on the Multi Commodity Exchange (MCX), the yellow metal contract for October delivery traded higher by ₹190, or 0.12%, at ₹1,52,769 per 10 grams in a business turnover of 635 lots. Fresh positions by market participants led to a rise in the precious metal's prices, as analysts noted. Gold futures rose 0.65% to $4,384.16 per ounce in New York, showing positive momentum in international markets. In the global market, spot gold edged 0.1% lower to $4,349.44 per ounce as escalating tensions in the Middle East raised inflation concerns and strengthened expectations that interest rates could remain elevated.
The price movement was consistent across all gold purities and quantities, with 24-karat gold for 100 grams priced at ₹15,43,100, down ₹10,400 from the previous rate. According to The Hindu BusinessLine, for buyers purchasing in larger quantities, 8 grams of 24K gold was priced at ₹1,23,448, while 10 grams cost ₹1,54,310. 22-karat gold for 100 grams was ₹14,14,500, down ₹9,500 from the previous rate, with 8 grams priced at ₹1,13,160 and 10 grams at ₹1,41,450. The 18K gold rate stood at ₹11,573 per gram, registering a decline of ₹78, with 8 grams priced at ₹92,584 and 100 grams at ₹11,57,300. Silver prices remained stable across all quantities, with 1 kilogram at ₹2,50,000 and 100 grams at ₹25,000.
The crash comes as Brent crude is nearing $100 per barrel and causing pressure on inflation ahead, which increases the odds of a rate hike this month from the US Federal Reserve, as noted by market analysts. Gold found support from the new tensions between the US and Iran, while the US dollar remained steady. The rise comes as the CME FedWatch Tool shows a 60% chance of a rate hike next week, a factor that could pressure non-yielding gold, as noted by Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions Ltd. and President of IBJA. Markets now await tomorrow's PPI and CPI prints, which could provide further direction for precious metals. Gold is eyed between $4,300-$4,500, while silver faces key levels at $65 and $67, according to Kothari's technical analysis. The gold rally faced resistance from geopolitical developments, with renewed military tensions between the United States and Iran, with Iran claiming that it has hit American vessels and oil tankers in Hormuz in retaliation for US strikes.
For Indian traders, Vikram Subburaj, CEO, Giottus.com, said, the key point is that this remains a headline-driven market. Gold is consolidating around the ₹1.53 lakh zone, while silver is trying to sustain levels above ₹2.39 lakh per kg. He added that the next major trigger is US inflation data. Until there is more clarity on the Fed's policy path, traders should avoid chasing sharp moves. Extra caution is warranted with silver, as price swings in silver remain significantly larger. Gold entered the week with an unusual setup: geopolitical risk is high, yet bullion is struggling to attract a meaningful safe-haven premium, as higher oil prices are increasingly being viewed as an inflation risk. According to The Times of India, gold had a volatile run last week, initially rebounding above $4,500/oz as softer US Treasury yields and a weaker dollar improved sentiment toward bullion. The stronger jobs data pushed expectations of a September Fed rate hike above 50% and lifted the US 2-year Treasury yield toward 4.38%, its highest since January 2025.
