India Gold, Silver Futures Fall on Geopolitical Worries
Precious metal futures in India dropped on Monday, 28 September, with MCX gold down almost 2% and silver contracts declining 2.6% in early trading hours.
Futures Market Sees Sharp Decline
Indian precious metal futures experienced a notable downturn during early trading hours on Monday, 28 September. Gold futures for October delivery on the Multi Commodity Exchange (MCX) registered a fall of nearly 2%, settling at ₹ 148,092 per 10 grams. Similarly, December silver contracts on the MCX saw a 2.6% decrease, trading at ₹ 228,566 per kilogram around 9:03 am.
This market movement occurred amid reports of fresh geopolitical tensions, which analysts cited as influencing investor sentiment.
Retail Prices Reflect Downturn
The retail market also reflected the softening trend for precious metals. According to data from the Indian Bullion Association (IBA), 24-karat gold was priced at ₹ 148,910 per 10 grams on Monday, while 22-karat gold, commonly used for jewellery due to its durability, traded at ₹ 136,501 per 10 grams. Fine silver (999 purity) was available at ₹ 228,780 per kilogram.
These figures represent base prices, with jewellers typically adding making charges, taxes, and Goods and Services Tax (GST) to the final customer bill.
Metals' Recent Performance Context
The current price drop follows a period of significant gains for both gold and silver. Gold experienced its strongest bull run since 1979, with prices increasing by over 75% until recently. This rise was largely driven by safe-haven demand and prevailing global economic uncertainty.
Silver prices saw even steeper increases, with rates climbing from approximately ₹ 78,600 per kilogram in 2023–2024 to more than ₹ 240,000 per kilogram by September 2026, primarily due to strong industrial demand and currency fluctuations.
The volatility in India's precious metals market shows the continued influence of external factors, particularly global geopolitical developments and currency movements. For investors in India, these shifts underscore the need to monitor international stability and foreign exchange trends, as they directly impact the local pricing of gold and silver.
While both metals have demonstrated long-term growth, short-term fluctuations driven by market sentiment remain a key consideration for portfolio planning.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
Comments.
Comments are moderated. We remove what is unlawful, abusive or off-topic, and and you remain responsible for what you post.
Reader comments open soon. Until then, corrections and responses go to our newsroom, and we publish what we get wrong on Corrections.