Gold prices in India recovered significantly on Thursday, September 10, after witnessing a sharp one-day fall of ₹10,400 per 100 grams for 24-karat gold. According to Goodreturns, 24-karat gold rate rose by ₹12,000 to ₹15,55,100 per 100 grams, while 22-karat gold gained ₹11,000 to ₹14,25,500 per 100 grams. The latest rise comes after gold climbed more than 1% globally on Wednesday, supported by a weaker US dollar. Investors are also awaiting key US inflation data due this week, which could offer fresh clues about the Federal Reserve's monetary policy outlook amid the ongoing rally in oil prices. The recovery follows a period of sustained selling pressure that pulled gold down over 1% to near $4,345 and silver 0.5% lower to $65.50, as elevated Treasury yields, firmer Fed rate-hike expectations and rising crude prices collectively outweighed dollar softness.
The price movement showed recovery across all gold purities and quantities, with 24-karat gold for 100 grams priced at ₹15,55,100, up ₹12,000 from the previous rate. According to Goodreturns, for buyers purchasing in larger quantities, 8 grams of 24K gold costs ₹1,24,408, while 10 grams is priced at ₹1,55,510. 22-karat gold for 100 grams is ₹14,25,500, up ₹11,000 from the previous rate, with 8 grams priced at ₹1,14,040 and 10 grams at ₹1,42,550. The 18K gold rate stands at ₹11,66,300 per 100 grams, higher by ₹9,000, with 8 grams priced at ₹93,304 and 10 grams at ₹1,16,630. Silver prices remained stable at ₹255 per gram and ₹2,55,000 per kilogram, unchanged from the previous session.
The recovery 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 weaker US dollar, while the US dollar index retreated to near two-month lows around 98.6, weighed by yen appreciation following hawkish commentary from several Bank of Japan officials. 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 are currently pricing approximately 60% probability of a 25-basis point rate increase at the September 16 FOMC meeting. Markets now await Thursday's PPI and Friday's 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.
Across major cities, gold rates showed uniformity with Chennai, Hyderabad, and Bangalore maintaining similar pricing structures. As per Goodreturns, in Chennai, 10 grams gold price in 24-carat and 22-carat are similar; however, 18-carat gold is more expensive in Chennai than compared to Hyderabad and Bangalore. 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 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.
