Gold and silver prices in India exhibited no major fluctuations over the weekend, holding steady for two consecutive days. The week prior was notably bearish for the domestic bullion market as gold rates dropped multiple times across the country. This price cooling offered much-needed respite to retail customers and families purchasing jewellery for the ongoing wedding season, who had been facing intense financial pressure due to recent record-high valuations.
Domestic Retail Gold Rates Across Carats and Cities
On August 16, the rate for 22-carat gold in India settled at the previous day's level of Rs. 1,42,200 per 10 grams. Meanwhile, 24-carat pure gold traded at Rs. 1,55,130 per 10 grams. The retail price for 18-carat gold stood at Rs. 1,16,350 per 10 grams. For bulk purchases, 100 grams of 22-carat gold stood at Rs. 14,22,000, whereas 100 grams of 24-carat gold was priced at Rs. 15,51,300.
A similar flat price pattern was observed across key southern cities. In Chennai, 22-carat gold was quoted at Rs. 1,42,200 per 10 grams and 24-carat gold at Rs. 1,55,130 per 10 grams, while 18-carat gold retailed at Rs. 1,20,000 per 10 grams. In Hyderabad, 22-carat gold maintained Rs. 1,42,200 per 10 grams and 24-carat gold stayed at Rs. 1,55,130 per 10 grams.
MCX Futures and Domestic Silver Price Trends
On the Multi Commodity Exchange (MCX), gold futures contract with an October 5th maturity date settled 0.73% higher at Rs. 1,54,590. Silver futures maturing on September 4th rose by 0.15% to close at Rs. 2,36,272 per kg.
Physical silver prices in India also saw stable trading on Sunday, August 16. The price of 1 kg of silver across the country stood at Rs. 2,55,000, while 100 grams of silver was available at Rs. 25,500.
Global Market Dynamics and Economic Indicators
Providing macroeconomic context, Akshat Siddhant, Lead quant analyst at Mudrex, noted that gold is consolidating near $4,350 an ounce and silver around $64.50 following a retreat from multi-week highs due to Thursday's profit-taking. Both precious metals continue to draw support from softer US inflation figures. Subdued CPI data alongside cooler July PPI readings have lowered market expectations of a September Federal Reserve rate hike to roughly 35%, down from 55% a week earlier.
In global trading, spot gold rose 0.7% to $4,379.95 per ounce, and US gold futures settled up 0.4% at $4,437.30. Spot silver recorded a 0.7% gain to reach $64.88 per ounce. Conversely, crude oil dropped below $81 after breaking a five-day winning streak. This retreat occurred despite the International Energy Agency doubling its quarterly supply-deficit projection to 1.8 million barrels per day, as US crude inventories unexpectedly expanded by 17.4 million barrels, marking the largest single-week inventory rise since January 2023.
