Gold Prices Drop to 153,260 Rupees per 10 Grams in Mumbai

Spot gold price fell 0.5% to $4,327.80 per ounce. This marks the third consecutive weekly decline for the asset. In Mumbai, 24-karat gold is priced at 152,990 rupees per 10 grams. Silver 999 fine stands at 234,260 rupees per kilogram. These figures reflect the market status as of Monday morning.

The price drop follows a surge in crude oil costs. Iran-backed Houthi attacks damaged Saudi Arabia's key oil pipeline. This event stoked inflation concerns globally. Markets now expect the US Federal Reserve to raise interest rates. Higher rates reduce the appeal of non-yielding bullion for investors.

Uniform pricing across Maharashtra cities

Rates in Pune, Nagpur, and Nashik mirror Mumbai's levels. 24-karat gold costs 152,990 rupees per 10 grams in all four cities. 22-karat gold is priced at 140,241 rupees per 10 grams. Silver 999 fine remains at 234,260 rupees per kilogram. No regional price differences were reported for these locations.

MCX gold futures also showed a marginal decline. The rate stood at 152,655 rupees per 10 grams on September 14. This represented a 0.08% drop. MCX silver futures decreased by 0.04% to 234,886 rupees per kilogram. The domestic market mirrors the global downward trend.

Geopolitical tensions drive market volatility

The Red Sea conflict directly impacted oil logistics. Saudi infrastructure faced attacks from Houthi groups. This disrupted the flow of crude oil from the Kingdom. Such supply constraints typically push energy prices higher. Energy costs influence broader inflation metrics across the globe.

The Federal Reserve meets on September 15 and 16. Traders anticipate potential rate hikes in response to inflation data. Gold usually correlates negatively with interest rates. As borrowing costs rise, the opportunity cost of holding gold increases. This dynamic pressures prices downward in the short term.

Long-term forecasts remain bullish

Goldman Sachs maintains an optimistic long-term view. The bank forecasts gold could reach $4,900 per ounce by 2026. This target sits above current trading levels. However, analysts expect elevated price volatility in the interim. The firm cites structural changes in global monetary policy as key drivers.

GN auto markets/commodities: gold prices data confirms the current dip. US gold futures for December delivery fell nearly 1% to $4,368.60. This aligns with the spot market movement. Investors are reassessing positions ahead of the central bank decision.