Gold Slips Again In India As Two-Day Rally Cools, Silver Holds Firm On 5 September

Gold rates for 24K, 22K and 18K fell in India on Saturday even as silver held steady at Rs 250 per gram. Stronger than expected US jobs data lifted expectations of a Federal Reserve rate hike, pressuring bullion globally.

Gold buyers in India woke up to cheaper rates on Saturday, as the metal gave back part of the sharp gains it had booked over the previous two trading sessions. The pullback came even as the broader bullion trade kept an eye on shaky global cues, with a stronger than expected US jobs report reviving talk of another Federal Reserve rate hike. Every major purity, 24 karat, 22 karat and 18 karat, moved lower for the day, while silver held its ground without any change.

24 Karat Gold Rates Slip Across The Board
The purest retail grade, 24 karat gold, was quoted at Rs 15,480 per gram on Saturday, a fall of Rs 186 compared with the previous session. For buyers looking at slightly larger quantities, 8 grams of 24 karat gold cost Rs 1,23,840, down Rs 1,488, while the widely tracked 10 gram rate came in at Rs 1,54,800, a drop of Rs 1,860. Anyone purchasing in bulk saw 100 grams priced at Rs 15,48,000, which was lower by Rs 18,600 from the day before.

Even with Saturday's decline, the metal was far from cheap by recent standards. Over the two sessions immediately before this fall, 24 karat gold had actually added Rs 46,400 for every 100 grams, so the latest correction only trimmed a small part of that earlier run-up. Anyone who bought before the rally would still be sitting comfortably higher than a week ago.

22 Karat And 18 Karat Prices Follow The Same Trend
The 22 karat variety, the grade most commonly used for everyday jewellery, was priced at Rs 14,190 per gram, down Rs 170 on the day. Eight grams of 22 karat gold worked out to Rs 1,13,520, a decline of Rs 1,360, and 10 grams cost Rs 1,41,900, cheaper by Rs 1,700. A 100 gram lot of 22 karat gold was available at Rs 14,19,000, down Rs 17,000 from the previous rate.

The lower purity 18 karat gold, often used in lighter, budget friendly ornaments, slipped in tandem. It traded at Rs 11,610 per gram, a fall of Rs 139. For 8 grams the price came to Rs 92,880, down Rs 1,112, while 10 grams cost Rs 1,16,100, a decrease of Rs 1,390. A 100 gram quantity of 18 karat gold was quoted at Rs 11,61,000, lower by Rs 13,900. The gap between the three purities reflects how much pure gold each carries, so every grade moved down by a proportionate amount once the base rate softened.

Silver Holds Steady At Record Levels
Unlike gold, silver did not budge at all during the session. The white metal stayed at Rs 250 per gram, exactly matching the previous day's level. That worked out to Rs 2,000 for 8 grams and Rs 2,500 for 10 grams, with no movement on either count. A 100 gram batch of silver held at Rs 25,000, and a full kilogram, or 1,000 grams, remained priced at Rs 2,50,000, unchanged from the prior session. The steady reading suggests silver buyers faced no fresh pressure even as gold cooled off.

Why Bullion Came Under Pressure Globally
The domestic softness mirrored a broader retreat in international bullion markets, where gold was on course for a weekly loss. The trigger was a US employment report that came in stronger than economists had expected, which strengthened the view that the Federal Reserve might raise interest rates as early as this month. Higher interest rates make non-yielding assets like gold less attractive to investors, since bullion pays no interest of its own and has to compete with returns available elsewhere once borrowing costs climb. That dynamic tends to pull money away from gold and into interest bearing instruments, and it was visible in the way prices eased both overseas and in Indian markets on the same day.

What The Bullion Trade Is Watching Next
Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions Ltd and President of the India Bullion and Jewellers Association Ltd, pointed out that August's ADP report showed only modest growth in private payrolls, and that Friday's jobs numbers were being treated as the week's key event for bullion traders. On the charts, he noted that gold had bounced back after touching its 4315 dollar target and was now watching resistance near 4470 and 4520 dollars, with support seen at 4370 dollars. He added that silver had rebounded from the 63 dollar mark and was targeting resistance at 67 dollars, with support placed at 64.7 dollars.

Taken together, the moves suggest the metal has not broken its recent uptrend, it has simply paused to digest the jobs data before its next move. For Indian buyers, that means rates could stay volatile in the days ahead, swinging with every fresh signal on US interest rates even as domestic demand around festive and wedding purchases continues to influence local premiums.

What this means for you
The dip gives buyers a short window of slightly cheaper gold and silver before global cues push prices around again.

• Jewellery buyers: A 10 gram purchase of 24K gold now costs Rs 1,860 less than the previous day, and 22K gold is cheaper by Rs 1,700 for the same weight. Anyone planning a purchase this week could lock in a marginally lower rate before the next US data release moves the market.
• Investors holding gold: Since 24K gold had added Rs 46,400 per 100 grams over the two sessions before this fall, buyers who got in earlier are still comfortably ahead despite Saturday's dip.
• Silver buyers: With silver unchanged at Rs 250 per gram, or Rs 2,50,000 per kilogram, there is no immediate incentive to rush a purchase, but no extra cost either.
• Anyone tracking US rate decisions: Because the Federal Reserve could raise rates as soon as this month, further swings in gold and silver are likely, so price-sensitive buyers should check daily rates rather than assume today's level will hold.

Questions & Answers

1. What was the 24 karat gold rate on 5 September?
24 karat gold was priced at Rs 15,480 per gram, down Rs 186 from the previous day.

2. Did silver prices change?
No, silver stayed unchanged at Rs 250 per gram, or Rs 2,50,000 per kilogram.

3. Why did gold prices fall?
Stronger than expected US jobs data raised expectations of a Federal Reserve rate hike, making non-yielding gold less attractive to investors.

4. What was the price of 10 grams of 22 karat gold?
10 grams of 22 karat gold cost Rs 1,41,900, a decline of Rs 1,700.

5. Had gold risen recently before this fall?
Yes, over the two sessions before this fall, 24 karat gold had added Rs 46,400 per 100 grams.

6. What was the price of 100 grams of 18 karat gold?
100 grams of 18 karat gold was priced at Rs 11,61,000, down Rs 13,900.

7. Who provided this market commentary?
The commentary came from Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions Ltd and President of the India Bullion and Jewellers Association Ltd.

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