Gold Rises 0.65% in India as Middle East Tensions Persist

Gold prices in India rose by 0.65% during early trading on Wednesday, September 16. The increase reflects continued safe-haven demand driven by geopolitical instability. MCX Gold 5 October futures traded at ₹151,785 per 10 grams. This rebound follows a 2% decline recorded on Tuesday, September 15. Silver contracts also strengthened, with MCX Silver 4 December rising 1.33% to ₹235,200 per kilogram.

The price movement is linked to recent events in West Asia. Saudi Arabia temporarily closed its East-West pipeline after drones from Iraq damaged the facility. The pipeline serves as a key alternative to the Strait of Hormuz for crude oil transport. Uncertainty over the US-Iran conflict remains a primary driver for precious metal assets. Investors are shifting capital toward gold and silver amid these ongoing regional risks.

Retail rates vary across major cities

Retail prices for 24-karat gold ranged from ₹151,790 to ₹152,500 per 10 grams across major Indian cities. New Delhi recorded the lowest rate at ₹151,790. Chennai reported the highest rate at ₹152,500. Mumbai 24-karat gold was priced at ₹152,050. Bengaluru and Hyderabad followed with rates of ₹152,170 and ₹152,300 respectively. Kolkata 24-karat gold stood at ₹151,850.

22-karat gold prices showed similar regional variations. The rate in New Delhi was ₹139,141 per 10 grams. Chennai offered the highest 22-karat price at ₹139,792. Mumbai and Bengaluru recorded rates of ₹139,379 and ₹139,489 respectively. Hyderabad and Kolkata priced 22-karat gold at ₹139,608 and ₹139,196. Final consumer prices often exceed these base rates due to making charges and taxes.

Silver prices remain elevated year on year

Silver 999 Fine rates stayed above ₹234,000 per kilogram in all tracked cities. New Delhi silver was priced at ₹234,070. Mumbai and Bengaluru reported rates of ₹234,480 and ₹234,660 respectively. Hyderabad and Chennai showed higher prices at ₹234,850 and ₹235,160. Kolkata silver traded at ₹234,170. The Indian Bullion Association data confirms these baseline retail levels for the day.

Silver prices have increased significantly since 2023. Rates rose from approximately ₹78,600 per kilogram in 2024 to over ₹240,000 in August 2026. Gold also experienced a strong bull run last year, rising more than 75%. This was the strongest annual gain since 1979. Current levels reflect sustained demand for precious metals despite moderate price corrections in September.

Geopolitical factors drive long-term metal trends

Middle East tensions have persisted for nearly seven months since February. These conflicts continue to influence global economic uncertainty. Precious metals benefit from this environment as investors seek stability. The damage to Saudi energy infrastructure highlights the fragility of regional supply chains. Such events reinforce the role of gold and silver as defensive assets in volatile markets.

The source GN auto markets/commodities gold prices notes that retail buyers must account for additional costs. Jewellers add making charges, VAT, and GST to the final bill. These additions can significantly increase the total cost of jewelry. Investors should monitor both spot and futures prices for accurate market exposure. The divergence between wholesale and retail rates varies by city and purity.