Gold and Silver Prices See Sharp Swings in Volatile Week as Jackson Hole Shock Wipes Out August Rally 

Mumbai, Sept 5: A tumultuous week for bullion markets drew to a close on Friday, with gold and silver prices recording sharp swings as the reverberations from Federal Reserve Chair Kevin Warsh’s Jackson Hole speech continued to ripple through global and domestic markets. The week ending 4 September witnessed gold surrendering a significant portion of its historic August gains—the metal’s strongest monthly performance this century—as traders repriced rate hike expectations, while silver endured its own volatile trajectory, punctuated by a steep single-day drop and a subsequent recovery. 

Gold Plunges 2.75% on August 29 After Warsh Signals Rate Hike 

The week’s most defining moment arrived on Friday, 29 August, when Federal Reserve Chair Kevin Warsh addressed the annual Jackson Hole symposium. In a single speech, Warsh effectively rewrote the market’s rate expectations, sending gold into a tailspin. COMEX gold futures for December delivery tumbled 2.75% on the day—the yellow metal’s sharpest single-day drop since 10 June—while spot gold retreated to approximately $4,430–4,448 per ounce, hovering near two-week lows. Spot silver suffered an even steeper decline, shedding more than 4% on the same session. 

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The trigger was unambiguous: Warsh’s hawkish remarks prompted a dramatic repricing of US monetary policy expectations. CME Fed Watch data showed traders pricing in a 60.4% probability of a September rate hike by Monday, 1 September, up sharply from roughly 36% before Warsh’s address. This shift in expectations directly undermined gold’s appeal as a non-interest-bearing asset, as higher rates increase the opportunity cost of holding bullion. The sell-off was compounded by profit-booking after gold’s extraordinary 14% rally in August—its strongest monthly gain this century—which had been fuelled by the US Treasury’s announcement that it would double its liquidity-support buyback operations for longer-dated bonds, a move markets interpreted as currency debasement. 

Domestic Gold Crashes ₹3,160 on August 28 as Global Sell-Off Deepens 

Indian bullion markets felt the full force of the global retreat on Friday, 28 August, with gold recording its steepest single-session fall of the week. The national rate for 24-karat gold plunged by ₹3,160 to ₹1,59,820 per 10 grams, while 22-karat gold fell ₹2,900 to ₹1,46,500 per 10 grams, and 18-karat gold dropped ₹2,370 to ₹1,19,870 per 10 grams. On a per-gram basis, 24K gold declined by ₹316, representing a fall of nearly 1.94% in a single session, more than four times the size of Thursday’s own ₹760 decline. 

Dealers attributed Friday’s sharp correction to a broad-based sell-off in global spot gold prices, driven by profit-booking after last week’s rally and a firmer US dollar overnight. Easing concerns over the US-Iran standoff and reduced safe-haven demand also prompted investors to book gains, with traders describing Friday’s move as the clearest signal yet that gold’s rally had run out of steam for now. Physical demand at the retail level held up despite the sharp fall, dealers said, with the ongoing wedding and festive season in several parts of the country continuing to support jewellery counter footfall. 

Silver Breaks Three-Day Flat Run with ₹50 per 10g Decline on August 28 

Silver, which had held remarkably steady through the early part of the week, finally broke its three-day streak of unchanged national rates on Friday, 28 August. The national rate for silver fell by ₹50 per 10 grams to ₹2,550, with a kilogram now priced at ₹2,55,000—down from ₹2,60,000 on Thursday. The per-gram rate slipped from ₹260 to ₹255, marking a decline of approximately 1.92% and ending a stretch of three consecutive flat sessions from Tuesday through Thursday. 

The move came even as gold posted a much sharper fall of its own, suggesting the two precious metals moved in the same direction for the first time this week after diverging through the middle sessions. Dealers said Friday’s decline mirrored the broader profit-booking seen in gold, with both precious metals coming under pressure after last week’s rally, while traders noted that silver’s near-term direction would likely hinge on fresh cues from the US Federal Reserve and any further movement in the US-Iran standoff. 

Gold Extends Losing Streak to Five Days as September Opens with ₹2,700 Drop 

The selling pressure carried into the new month, with gold extending its losing streak to five consecutive sessions. On Tuesday, 1 September, gold prices fell by ₹2,700 to trade at ₹1.58 lakh per 10 grams in the national capital. The 24-karat pure gold rate per gram was recorded at ₹15,676, while the rate per 10 grams stood at ₹1,56,760. Meanwhile, 22-karat gold was priced at ₹14,369 per gram and 18-karat at ₹11,757 per gram. By this point, gold had fallen more than ₹10,700 from its all-time high of ₹1,63,229 per 10 grams reached on 24 August. 

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The relentless decline was driven by the repricing of rate expectations following Warsh’s Jackson Hole address, with the dollar strengthening and Treasury yields firming as markets priced in a greater probability of a September hike. The sell-off in global markets was amplified by easing geopolitical tensions, which reduced the safe-haven bid for precious metals. In India, MCX gold futures for October delivery were trading around ₹1,54,000 per 10 grams, while MCX silver held at approximately ₹2,45,500 per kilogram, inclusive of all taxes. 

Silver Slides to ₹2,45,000 per kg on September 2 as Selling Intensifies 

Silver’s losses deepened on Wednesday, 2 September, as the metal succumbed to the same selling pressure that had engulfed gold. The national rate for silver fell to ₹2,450 per 10 grams, with a kilogram now priced at ₹2,45,000—down from ₹2,50,000 on Tuesday. On a per-gram basis, silver declined to ₹245, reflecting a drop of ₹50 per 10 grams. The MCX silver futures for September 2026 delivery were up ₹2,460 at ₹2,38,726 per kg in early trade, though the broader trend remained bearish. 

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The slide was attributed to a combination of factors: a stronger US dollar, rising Treasury yields, and fading geopolitical risk premiums. The US Bureau of Economic Analysis had released July 2026 Personal Consumption Expenditures (PCE) inflation data on 26 August, with headline PCE rising 0.2% month-on-month and 3.7% year-on-year, while core PCE increased 0.2% from June and 3.3% year-on-year. These figures provided critical context for US monetary policy expectations, with higher inflation readings reinforcing the case for rate hikes. Spot silver was trading around $66.50 an ounce, near its softest levels since mid-August. 

Gold Rebounds 2% on September 3 as Safe-Haven Demand Returns 

After five consecutive days of losses, gold staged a sharp rebound on Thursday, 3 September, as safe-haven demand returned amid renewed geopolitical uncertainty. The national rate for 24-karat gold surged by ₹3,330 to ₹1,55,350 per 10 grams, while 22-karat gold climbed to ₹1,42,400 per 10 grams and 18-karat gold rose to ₹1,19,510 per 10 grams. The rebound represented a gain of approximately 2% in a single session, erasing a portion of the previous week’s losses. 

The recovery was driven by several factors. Gold futures rose by ₹1,029 to ₹1.53 lakh per 10 grams in futures trade as speculators created fresh positions on firm spot demand. The US-Iran conflict continued to escalate, with the European Union formally joining the US-led ‘Operation Economic Outcast’ sanctions campaign against Tehran, reigniting safe-haven demand for bullion. 

Also Read: How to Invest in Silver: 6 Best Ways (2026)

Additionally, Federal Reserve Governor Christopher Waller signalled that the central bank would keep rates unchanged if inflation remains contained, which led to a slide in the probability of a rate hike and weighed on the dollar. Lower interest rates increase the appeal of non-interest-bearing bullion, and following Waller’s remarks, US Treasury yields and the dollar index extended declines. 

Silver Surges 2.22% on September 3 as Dollar Weakens 

Silver mirrored gold’s recovery on Thursday, 3 September, posting its own sharp rebound after two days of declines. The national rate for silver surged to ₹2,500 per 10 grams, with a kilogram now priced at ₹2,50,000, up from ₹2,45,000 on Wednesday. On a per-gram basis, silver rose to ₹250, representing a gain of approximately 2.22%. Indian silver prices surged by 2.22% as the dollar weakened, with the metal reaching ₹241 per gram and ₹2,40,820 per kilogram in some markets. 

The recovery in silver was driven by the same factors that lifted gold: a weakening dollar, declining Treasury yields, and renewed geopolitical tensions. Silver prices across the country averaged ₹244.90 per gram (or ₹2,44,900 per kilogram), though regional variations persisted, with Kerala recording a higher rate of ₹249.90 per gram. In Bengaluru, silver closed at ₹2,48,200 per kilogram, while Chennai recorded the highest silver 999 rate. 

City-Wise Gold and Silver Performance: Chennai Leads, Mumbai Follows 

Across India’s major cities, gold and silver prices largely mirrored the national trend, though regional variations persisted due to local taxes, transportation costs, and bullion-market conditions. On 27 August, the 24-karat gold rate in Chennai stood at ₹1,60,480 per 10 grams, the highest among major cities, while Mumbai quoted ₹1,60,020 and Delhi ₹1,59,740. Silver prices followed a similar pattern, with Chennai recording ₹2,41,980 per kilogram, Mumbai at ₹2,41,270, and Delhi at ₹2,40,860. 

By 28 August, after the sharp correction, Chennai’s 24-karat gold had fallen to ₹1,58,550 per 10 grams, while silver in Chennai dropped to ₹2,600 per 10 grams from ₹2,650 the previous day. Mumbai and Delhi both recorded silver at ₹2,550 per 10 grams on 28 August, reflecting a uniform ₹50 decline across all major cities. 

On 29 August, Chennai’s gold price fell by ₹2,360, with 24-karat gold now at ₹1,58,240 per 10 grams and 22-karat at ₹1,45,050. In major cities, 24-karat gold was priced around ₹1,61,200 per 10 grams, while 22-karat gold was near ₹1,47,800. Silver was trading at approximately ₹2,54,900 per kilogram, with Chennai and Hyderabad recording the highest silver rate at ₹2,64,900 per kg. 

By 4 September, the recovery was evident across all cities. Chennai’s 24-karat gold was at ₹1,55,600 per 10 grams, Mumbai at ₹1,55,150, Delhi at ₹1,54,880, and Kolkata at ₹1,54,940. Silver 999 fine rates varied: Chennai at ₹2,38,250 per kg, Mumbai at ₹2,40,160, Delhi at ₹2,39,750, Bengaluru at ₹2,40,350, and Hyderabad at ₹2,40,250. 

MCX Futures Reflect Volatility as October Gold Contract Slides from Record High 

The Multi Commodity Exchange of India (MCX) witnessed intense volatility throughout the week, with futures contracts tracking the gyrations in global spot markets. On 27 August, MCX October gold futures were trading at ₹1,60,509 per 10 grams in early trade, up 0.53%, while September silver futures were at ₹2,41,341 per kg, a gain of 0.71%. By the close, the October gold contract settled at approximately ₹1,59,189 per 10 grams, down ₹474 from the previous closing price. 

The 4 September MCX gold rate was trading 0.38% lower at ₹1,55,610 per 10 grams, while MCX silver futures were trading about 0.59% lower at ₹2,40,560 per kg. The September 4 GOLDM (MCX) contract was at ₹1,58,101, down ₹560 or 0.35%. The October gold contract on MCX closed at ₹1,59,189 with a change of ₹193 or 0.12%. 

The sell-off from the record high was particularly dramatic. After reaching an all-time high of ₹1,63,229 per 10 grams on 24 August, MCX gold had fallen more than ₹10,700 to ₹1,52,514 per 10 grams. This represented a correction of approximately 6.6% from the peak in just five trading sessions—one of the sharpest pullbacks in recent memory. 

Gold Holds Above $4,500 as Payrolls Data Awaited 

In international markets, gold managed to hold above the $4,500 per ounce level by the end of the week, though it remained well below the $4,600 levels seen just days earlier. On 27 August evening, international spot gold prices rose from $4,589 to $4,607.90 per troy ounce, supported by a weaker dollar and central bank purchases. By the morning of 28 August, international gold prices fell to around $4,596 per ounce, losing some gains due to profit booking after an overnight rally. 

By 4 September, gold held steady on Friday and was poised for a small weekly gain, as attention turned to highly awaited US payrolls data for clues on the Federal Reserve’s next interest rate decision. US December gold futures were quoted at $4,697.45 per troy ounce in early trade on 27 August, up 0.20%. Spot gold was pegged at ₹1,53,167 per 10 grams in the evening session on 4 September. 

In Dubai, 24-karat gold was priced at ₹1,36,305 per 10 grams on 4 September, reflecting a difference of ₹18,805 or 13.80% compared to Indian prices, not accounting for fees, duties, and taxes. The India-Dubai price differential remained a key consideration for bullion traders and buyers. 

The week’s price action underscores the sensitivity of bullion markets to US monetary policy signals and geopolitical developments, with gold surrendering a significant portion of its historic August gains after the Jackson Hole shock. Physical demand in India remained resilient through the correction, supported by the ongoing wedding and festive season. The sharp rebound on 3 September suggests that safe-haven demand remains intact, though market participants should monitor US payrolls data and Federal Reserve communications closely for further direction on rate expectations. 

Source 

• https://silverprice.org/silver-price-india.html 
• https://goldprice.org/gold-price-india.html