Buyers preparing for the upcoming festive season witnessed substantial price relief across bullion counters through the month of September, as both gold and silver underwent steep declines. Following four weeks of volatile trading, gold rates dropped by ₹9,000 per 10 grams, while silver plunged by ₹8,000 per kilogram over the same monthly span. However, the sustained downturn encountered strong buying interest at lower levels on Thursday, October 1, 2026, enabling precious metals to stage a noticeable recovery driven by favorable overseas market signals.
How Gold and Silver Fared Across September
The bullion market remained on the back foot from the start of September until the final trading session of the month. In the Delhi physical market, gold commenced trading on September 1 at ₹1.58 lakh per 10 grams. A persistent lack of upward momentum and sustained liquidations pulled the yellow metal down to ₹1.49 lakh per 10 grams by September 30, translating into a net monthly loss of ₹9,000 per 10 grams for retail buyers.
Silver experienced an identical downward trajectory across the identical timeframe. The white metal stood at ₹2.40 lakh per kilogram in Delhi on September 1, but subdued demand throughout the month eroded its premium. By September 30, silver retreated to ₹2.32 lakh per kilogram, registering an outright decline of ₹8,000 per kilogram across the thirty-day stretch.
October Opens With Stronger Futures and Spot Benchmarks
The downward momentum halted abruptly on the opening day of October, as domestic derivative contracts and foreign benchmark spot prices rebounded simultaneously. On the Multi Commodity Exchange (MCX), gold contracts climbed decisively into the green, successfully regaining and surpassing the ₹1.50 lakh mark. Silver futures also rallied nearly 1%, reclaiming the critical threshold of ₹2.26 lakh per kilogram during active trade.
Overseas bullion platforms reflected similar strength during the session. Spot gold advanced by 1% to break above $4,175 per ounce, while spot silver recorded a 1.20% gain to hover around $61 per ounce. The broad-based uptick across international centers provided immediate technical support to domestic jewelry rates after weeks of persistent downward pressure.
Two Key International Factors Driving the Bullion Rebound
Market observers attribute the sudden reversal in gold and silver valuations to two distinct global developments that unfolded simultaneously
- Crude oil price moderation via Saudi pipeline supply: Saudi Arabia stepped up crude oil shipments through pipeline routes, which triggered a price cooling across global energy benchmarks. Lower crude costs helped ease broader inflation anxieties worldwide, creating favorable liquidity conditions across financial and commodity assets.
- Chinese Golden Week jewelry demand surge: The annual Golden Week celebrations kicked off in China on Thursday. Industry specialists point out that retail jewelry consumption in China rises sharply during this multi-day festival, providing substantial spot market absorption that is poised to offer ongoing price support for gold and silver over the near term.
