Domestic precious metals markets experienced fresh declines on October 1, bringing relief to retail buyers across the country. After giving up early gains in international trading due to strong US economic data, spot bullion retreated toward lower price points. In the domestic retail space, 100 grams of 24-carat gold stands at Rs 14,92,400, while the equivalent 100 grams of 22-carat gold trades at Rs 13,68,000. These price movements directly impact both jewellery fabrication costs and consumer budgets for upcoming purchases.
Silver Drops Following Two Days Of Flat Trading
Silver also registered notable declines after maintaining unchanged levels over two consecutive sessions. The price of 1 kilogram of silver in India dropped by Rs 5,000 to settle at Rs 2,35,000 on October 1. Similarly, 100 grams of silver now retails at Rs 23,500. This softness reflects reduced immediate industrial demand and a broader risk re-evaluation driven by firming yields across global sovereign debt markets.
City-Wise Retail Gold Rates Across Major Metros
Retail prices for 22-carat and 24-carat gold in major metropolitan cities matched the broader national benchmarks today. Here is the city-by-city price breakdown
- Chennai: The current rate for 24-carat gold stands at Rs 1,49,240 per 10 grams, while 22-carat gold retails at Rs 1,36,800 per 10 grams.
- Bangalore: In the technology hub, 22-carat gold stands at Rs 1,49,240 per 10 grams, whereas 24-carat gold is priced at Rs 1,36,800 per 10 grams.
- Hyderabad: Buyers in Hyderabad are purchasing 22K gold at Rs 1,36,800 per 10 grams, while 24K gold retails at Rs 1,49,240 per 10 grams.
- Mumbai: In Mumbai's bullion market, 22-carat gold trades at Rs 1,36,800 per 10 grams, and 24-carat pure gold stands at Rs 1,49,240 per 10 grams.
Domestic Futures Register Counter Gains On MCX
In contrast to the spot market softness, futures contracts traded on the Multi Commodity Exchange witnessed modest upward momentum during Thursday trade. The gold futures contract maturing on October 5 climbed by 1.36% to trade at Rs 1,48,106. In parallel, silver futures scheduled for maturity on December 4 gained 1.18%, reaching Rs 2,26,350 as market participants rolled over selective speculative positions.
Global Macro Pressures And Inflation Trends Drive Market Direction
Spot gold relinquished initial upside momentum to close lower as robust economic data from the United States bolstered expectations for prolonged tighter monetary policy. As noted in the ICICI Direct Daily Commodity Outlook, spot gold is anticipated to encounter resistance around the $4,200 level, with potential declines pushing it toward $4,100 under pressure from a resilient US dollar and climbing Treasury yields. Persistent energy-driven inflation and elevated bond yields remain heavy burdens on commodity valuations.
Data shared by Nirmal Bang Securities highlighted that bullion swung between a gain of 0.9% and a drop of 0.7%. Traders currently price in an approximate 40% probability of a policy rate hike at the upcoming US central bank gathering. Meanwhile, the Fed's primary gauge of underlying inflation, the core personal consumption expenditures price index, climbed by an annualized 0.2% in August, falling slightly short of projections alongside a downward revision for July. Having faced rate hikes for the first time since 2023 with signals of further potential tightening, gold ended September down by over 6%, marking its sharpest monthly pullback since June.
