Precious metal prices in India showed remarkable stability on Aug 25 on the festive occasion of Onam 2026, with gold and silver rates holding at their previous session levels across all purity categories. Despite robust physical demand driven by the festival season, domestic gold prices remained range-bound. Meanwhile, international spot gold prices experienced a mild retreat but held firmly near monthly highs above $4,642 per ounce. Global bullion prices had touched their highest levels since mid-May on Tuesday, capitalising on sharp gains triggered by the U.S. Treasury's bond buyback announcement. U.S. gold futures traded 0.1% higher around $4,700.
Breakdown of Domestic Gold Rates by Purity Level
In Kerala and other major Indian retail markets, 22-carat gold was quoted at Rs 1,50,100 per 10 grams on Wednesday, while the 100-gram variant stood at Rs 15,00,100. 22-carat gold is the primary purity standard used in traditional festive jewelry purchasing, particularly during Onam in southern India. The price stability has provided a favorable environment for retail buyers seeking festive purchases without unexpected price volatility.
The benchmark 24-carat gold rate across India held firm at Rs 1,63,700 per 10 grams, with 100 grams of this premium purity metal priced at Rs 16,37,000. Investors typically track 24-carat rates for bullion bars and coins. Simultaneously, 18-carat gold traded at Rs 1,22,810 per 10 grams, while 100 grams of 18-carat gold stood at Rs 12,28,100. The 18-carat category remains popular among consumers seeking lightweight and modern jewelry options.
Silver Rates Remain Flat in Southern Centers
Mirroring the trend in gold, physical silver prices in major southern hubs including Bangalore, Kerala, and Chennai remained unchanged from the previous day's closing rates. Currently, 1 kilogram of silver is priced at Rs 2,60,000, while 100 grams of silver stands at Rs 26,000. Both industrial requirements and festive silver ornament demand contributed to steady trading volumes across retail counters.
MCX Futures Market Performance for Gold and Silver
On the Multi Commodity Exchange (MCX), gold futures scheduled for delivery on October 5th traded at Rs 1,62,941, registering a marginal gain of 0.04%. Domestic derivatives matched the steady sentiment seen in physical markets, reacting to modest movements in global benchmark spot prices and currency valuations.
Silver futures maturing on September 4th posted a slightly stronger performance on MCX, gaining 0.41% to reach Rs 2,45,140 per kg. Market analysts note that derivative traders are maintaining a cautious approach ahead of crucial macroeconomic data releases from major global economies.
International Spot and Futures Dynamics
In international trade, spot gold eased 0.3% to $4,642.74 per ounce by 0410 GMT, remaining anchored near multi-week highs above $4,642. Bullion prices rallied significantly earlier in the week after the U.S. Treasury announced its bond buyback initiative, driving spot prices to their highest point since mid-May on Tuesday. U.S. gold futures edged up 0.1% to $4,700.70.
Geopolitical Factors and Macroeconomic Drivers
A key structural factor bolstering global gold demand is the month-long ceasefire in the US-Iran conflict, which continues to shape risk sentiment and sustain safe-haven inflows into precious metals. Geopolitical stability paired with underlying strategic risks keeps institutional investors allocated toward gold.
Concurrently, market participants are awaiting the upcoming U.S. PCE price index report, which serves as the Federal Reserve's preferred measure of inflation. Investors are also monitoring Federal Reserve Chair Kevin Warsh's scheduled address at the annual Jackson Hole symposium on Friday. However, market observers do not expect Warsh to provide definitive forward guidance regarding the central bank's policy interest rate decision in September, leading to range-bound price action in global commodity markets.
