Gold Drops 1,331 Rupees as Mideast Risks Outweigh Oil Price Gains
Domestic gold futures fell 1,331 rupees per 10 grams while silver dropped 1,600 rupees per kilogram due to geopolitical tension.
Key points
- MCX gold futures fell 1,331 rupees to 1,52,171 rupees per 10 grams in the latest session.
- Silver futures declined 1,600 rupees to 2,39,008 rupees per kilogram amid geopolitical uncertainty.
- The Bank of Japan raised rates, adding to global monetary tightening that weighs on gold demand.
MCX gold futures for October 2026 delivery fell by 1,331 rupees to reach 1,52,171 rupees per 10 grams. This decline reverses the gains seen in the two previous trading sessions.
Silver futures for September 2026 delivery dropped by 1,600 rupees to close at 2,39,008 rupees per kilogram. The drop reflects broader market adjustments amid shifting global risk factors.
Geopolitical Tensions Drive Metal Prices
Fresh threats between Iran and the United States have increased regional uncertainty. US President Donald Trump warned Iran of economic failure if no deal is reached.
The Iranian military stated it would respond harshly to any new attacks. These statements kept investors cautious despite lower oil prices from recovered Saudi shipments.
Rising Rates Impact Precious Metals
The Bank of Japan tightened monetary policy on Friday following Federal Reserve and ECB rate hikes. Higher rates make interest-bearing assets more attractive than non-yielding gold.
Minneapolis Fed President Neel Kashkari noted inflation remains too high across US sectors. This environment pressures demand for precious metals as yields rise globally.
Physical Market Prices Remain Stable
Standard 22-carat gold in Delhi is priced at 1,14,392 rupees per 8 grams. Pure 24-carat gold stands at 1,24,784 rupees per 8 grams in the same city.
Mumbai, Chennai, and Hyderabad report identical prices of 1,14,272 rupees for 22-carat gold. The Economic Times reports these figures reflect current physical market conditions.
