Gold prices staged a strong recovery on Thursday, September 3, 2026, jumping ₹333 to ₹15,535 per gram after losing around ₹91,100 per 100 grams in recent sessions. According to Goodreturns, 22 Karat gold climbed ₹305 to ₹14,240 per gram, while 18 Karat gold gained ₹249 to ₹11,651 per gram. Silver prices remained unchanged at ₹250 per gram (₹2,50,000 per kilogram) on Thursday, showing resilience after recent declines. The recovery came as gold rose more than 1% globally as the US dollar and Treasury yields eased, while investors focused on upcoming US nonfarm payrolls data that could influence Federal Reserve policy expectations. In the physical bullion market, 999-fine silver stood at ₹2,38,020 per kg, higher by 0.85%, showing continued volatility in precious metals for personal finance investors.
The precious-metal recovery came as markets are now pricing in a 70% chance of a rate hike at the Fed's upcoming meeting, up from previous expectations of 60% before Warsh's remarks, according to the CME FedWatch tool. As per CNBC TV18, Gaurav Garg, head of research at Lemonn, said the hawkish Jackson Hole comments have increased expectations of a September rate hike, with markets pricing in a significantly higher probability of a rate increase. Higher US yields and a stronger dollar tend to put pressure on non-yielding assets such as gold and silver, making the metals less attractive to investors seeking returns. The sustained selloff came as US Federal Reserve Chair Kevin Warsh's comments raised expectations that interest rates may need to rise, with his remarks coming closer than before to acknowledging that rate hikes could be required to bring down price pressures. Warsh didn't signal his support for a hike explicitly; he warned inflation isn't meaningfully slowing and that policymakers must be confident it is. Otherwise, he said, they had "work to do." Warsh said on Friday at the Jackson Hole economic symposium: "Here is my standard: We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do. That's our job," coming closer than he had previously to acknowledging that further rate hikes may be needed.
The precious-metal recovery was supported by easing US-Iran tensions, which had previously driven oil prices higher and increased bond yields. According to Goodreturns, U.S. airstrikes on Iran and Tehran's retaliation marked a major escalation, lifting oil for a third straight session and pushing Treasury yields higher. The continued tensions between the US and Iran pushed oil prices higher and increased bond yields, with the Fed Reserve tends to keep interest rates high amid speculation of heightened inflation due to the oil price hike. Crude oil prices rose as Washington and Tehran carried out a wave of fresh strikes against each other, raising concerns over supply disruptions through the Strait of Hormuz. The conflict at the Strait of Hormuz keeps the bullion volatile, as recent reports indicate the US attacked two rocket launchers on Larak Island in the Strait of Hormuz, while Iran claims to have struck US military bases in Jordan in response. Larak Island sits at a key location just offshore from Bandar Abbas port, which sits in proximity to the Strait of Hormuz, making the region strategically important for global oil flows. High Treasury yields make bullion less attractive since it generates no interest, adding to the pressure on precious metals as investors seek yield-bearing alternatives.
According to The Financial Express, Kaynat Chainwala, Assistant Vice President of Commodity Research at Kotak Securities, noted that the structural outlook for silver remains bullish, but over the shorter course of time it remains vulnerable to the Fed's policy stance. If the Fed delivers a hawkish tone, it will impact non-yielding assets first and surely affect the investment and ETF demand caused by rising yield expectations, so a pullback towards the $55-$57/oz is possible. However, she adds that this wouldn't affect silver's structural story, which remains supported by supply deficits and industrial demand. Jigar Trivedi, Senior Research Analyst at IndusInd Securities, noted that near-term price volatility is possible, and the white metal is expected to contract further, caused by the high possibility of a rate hike at the upcoming FOMC meeting. In international markets, the immediate support for spot silver sits at $65.5/oz, with deeper cushions at $63 and $61, while the immediate resistance level is seen at $68 and $70. On the domestic front, MCX support is layered at ₹2,32,500, ₹2,28,000 and ₹2,23,000, with resistance seen at ₹2,48,000, and MCX support at ₹2,30,000/kg, with resistance at ₹2,50,000/kg. Ponmudi R, CEO of Enrich Money, said "Overall near-term bias stays bearish with a break below $64.000; a sustained move above $65.000 could improve momentum and stabilize the current weakness."
Despite the recent correction, market experts view the current decline as a consolidation phase rather than a structural downturn. According to Mint, Colin Shah, MD, Kama Jewelry, said the correction should be viewed as a phase of consolidation rather than necessarily signalling a structural downturn. The week kicked off with gold under pressure, witnessing a sharp correction of nearly 2% on the MCX, influenced by aggressive profit-taking and soft global cues. While short-term technical selling is dominating the current price trajectory, this pullback can be actually treated as a healthy consolidation rather than a structural downturn, Shah explained. The fall in domestic prices could provide opportunities for consumers as the festive season has already begun and the wedding buying season is approaching, with Shah adding that the correction could help consumers take advantage of the volatile price environment, while retailers may see it as an attractive opportunity to accelerate inventory restocking. Internationally, Shah said the easing in bullion prices offers marginal relief to manufacturers through lower input costs and could improve price competitiveness in key overseas markets such as the US and GCC, potentially providing a boost to steady pre-holiday order fulfilment. Chintan Haria, principal, investment strategy at ICICI Prudential, said investment demand has become a key source of growth in gold demand in 2026, pointing to continued purchases by central banks which bought 345 tonnes of gold in the first half of 2026, according to World Gold Council data. Going ahead, precious metals could remain sensitive to US Federal Reserve interest-rate expectations, crude oil prices, inflation concerns and geopolitical tensions, with investors also watching upcoming US labour-market data which could provide fresh clues about the Fed's monetary-policy path.
