Gold Plunges 2.7% as $4,312 Spot Rate Rattles MCX Silver Down 4% on Fed Rate-Hike Bets 

Mumbai, Sept 12: Gold and silver prices witnessed a turbulent week from 7 to 11 September 2026, with the yellow metal tumbling nearly 2.7% in international markets and silver recording its sharpest single-day decline since July.  

The domestic bullion market mirrored global weakness, with MCX gold futures slipping below ₹1.52 lakh per 10 grams and silver futures retreating to ₹2.39 lakh per kg at the week’s close, as a robust US labour market report and escalating West Asia tensions reshaped the precious metals landscape.  

The week’s trading encompassed a series of sharp reversals, with safe-haven demand, currency fluctuations, and shifting US monetary policy expectations all competing for influence over price discovery. 

US Payrolls at 162,000 Lift Rate-Hike Odds to 60.4% 

The week began with spot gold trading near $4,461 per ounce on Monday, 7 September, before coming under intense selling pressure following the release of US non-farm payrolls data that showed 162,000 jobs added in August, nearly three times the market expectation of approximately 53,000. The stronger-than-expected employment figures strengthened the case for a hawkish Federal Reserve, with CME’s FedWatch tool placing the probability of a 25-basis-point rate hike at the September 15-16 meeting at 60.4%, potentially taking rates to a range of 3.75-4.00%. 

International gold futures on COMEX fell 0.94% to $4,400.10 an ounce on Monday, while spot gold declined 0.8% to $4,392.88 per ounce. Silver proved even more volatile, with spot prices dropping to $65.79 an ounce, down 0.63%, as the metal’s dual role as both an investment asset and industrial commodity amplified selling pressure. The dollar index rose 0.16% to 99.16 on 4 September on hike bets, though it slipped 0.22% to 98.93 on 7 September as the initial reaction faded. The yen firmed meaningfully after several Bank of Japan officials adopted a more hawkish tone ahead of the central bank’s 18 September policy decision, which weighed on the dollar independently of the Fed narrative. 

The interplay between these factors created a volatile trading environment where gold prices oscillated between safe-haven buying linked to geopolitical tensions and selling pressure driven by the prospect of higher US interest rates. Market participants positioned themselves cautiously ahead of key inflation data releases, with the US Producer Price Index and Consumer Price Index scheduled for 10 and 11 September respectively. The outcome of these data points was expected to shape expectations ahead of the Federal Reserve’s 15-16 September policy meeting. 

Brent Above $101 and US-Iran Tensions Reshape Bullion Demand 

The sharp correction in precious metals was not solely driven by US monetary policy expectations. Escalating geopolitical tensions in West Asia and surging crude oil prices created a complex backdrop for gold and silver. Brent crude rose to around $101.4 a barrel on Thursday after crossing the $100 mark a day earlier, raising concerns that higher energy prices could keep inflation elevated and potentially force the Federal Reserve to maintain higher interest rates for longer. 

According to analysts, the market was firmly focused on Friday’s US consumer inflation data. A softer-than-expected reading could reduce expectations of tighter monetary policy and support gold, while a stronger print could push yields higher and weigh on the metal. Analysts noted that gold and silver were trading steadily as a softer dollar and escalating US-Iran tensions kept markets on edge ahead of the inflation data. Silver’s sharper swings reflected its sensitivity to industrial demand and the interest rate outlook. The metal gained about 3.3% in spot markets on Wednesday before easing on Thursday. Analysts said silver could test $70 an ounce if it holds above the $67 level. 

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

The geopolitical dimension added a layer of complexity to the market. Safe-haven demand typically supports gold prices during periods of geopolitical uncertainty, but the concurrent rise in crude oil prices created an offsetting effect by stoking inflation expectations and reinforcing the case for tighter monetary policy. This tug-of-war between safe-haven buying and rate-hike expectations produced significant intraday volatility, with gold prices fluctuating within a range of approximately $60 per ounce during the week. 

MCX Gold Falls ₹3,600, Silver Sheds ₹6,000 in Four Sessions 

The domestic bullion market tracked international weakness closely, with the rupee’s movement against the US dollar adding another dimension to price discovery. On the Multi Commodity Exchange, gold contracts for October delivery fell ₹462, or 0.3%, to ₹1.52 lakh per 10 grams on Monday, while silver contracts for December delivery declined ₹975, or 0.41%, to ₹2.36 lakh per kg. The selling pressure intensified mid-week, with gold futures dipping to ₹1.53 lakh and silver falling ₹1,500 per kg to ₹2,42,276 ahead of the US inflation data. 

Also Read: How to Invest in Gold for Beginners: Simple Start Guide 

By Thursday, 10 September, MCX gold futures were trading near ₹1,53,650 per 10 grams, down ₹182 from the previous close of ₹1,53,763, while silver futures had declined to approximately ₹2,43,100 per kg. The week’s cumulative decline for MCX gold stood at approximately ₹3,600 per 10 grams, with silver shedding nearly ₹6,000 per kg from its weekly opening levels. Gold futures had touched their highest level of the year at ₹1,80,779 per 10 grams, while silver futures peaked at ₹4,20,048 per kg, underscoring the magnitude of the recent correction from those elevated levels. 

The domestic market’s performance reflected both international price movements and rupee-denominated adjustments. The rupee was around ₹94.42 to the US dollar on Monday, according to market analysts. Analysts noted that healthy FCNR(B) deposit inflows had helped support the rupee, which in turn kept domestic gold prices in check. A stable rupee typically reduces the cost of imported gold in local terms, helping moderate the domestic price decline relative to international markets. 

Spot Gold Ends at $4,312, Silver at $63.40 After Plunge 

The sell-off intensified through the week, with spot gold touching an intraday low near $4,300 on Thursday before recovering to around $4,380, even as the inflation report strengthened expectations for another Federal Reserve rate increase. By Friday, 11 September, spot gold had settled at approximately $4,312.20 per ounce, marking a weekly decline of 2.7%, while spot silver dropped 0.3% to $63.40 an ounce after plunging 5.5% on Thursday, the largest single-day loss since July, culminating in a weekly decline of approximately 4%. The dollar’s subsequent softening to near two-month lows around 98.6 provided some cushion to gold prices, though it was insufficient to reverse the weekly losses. 

Check list of Gold ETFs in India 

The magnitude of silver’s decline was particularly notable, with the metal’s industrial demand profile making it more sensitive to changes in the interest rate outlook. Silver’s use in solar panels, electronics, and other industrial applications means that its price is influenced by both investment demand and manufacturing activity expectations. The sharp 5.5% single-day drop on Thursday reflected a rapid repricing of rate expectations following the inflation data, which showed persistent price pressures in the US economy. 

Mumbai Gold at ₹15,552, Delhi ₹15,567, Chennai ₹15,552 per Gram 

Gold prices across major Indian cities reflected the broader bearish sentiment, though regional variations persisted due to local taxes and import duties. On Friday, 11 September, the price of 24-karat gold in Mumbai stood at ₹15,552 per gram, while 22-karat gold was priced at ₹14,256 per gram and 18-karat gold at ₹11,664 per gram. In Delhi, 24-karat gold was quoted at ₹15,567 per gram, with 22-karat gold at ₹14,271 per gram and 18-karat gold at ₹11,598 per gram. Chennai recorded 24-karat gold at ₹15,552 per gram, 22-karat at ₹14,256 per gram, and 18-karat at ₹12,026 per gram, the highest 18-karat rate among major metros. 

Kolkata and Bangalore both recorded 24-karat gold at ₹15,552 per gram, 22-karat at ₹14,256 per gram, and 18-karat at ₹11,664 per gram. In Hyderabad and Pune, identical rates prevailed, with 24-karat gold at ₹15,552 per gram. Ahmedabad and Vadodara quoted 24-karat gold at ₹15,557 per gram, while Jaipur, Lucknow, and Chandigarh recorded ₹15,567 per gram for the same purity. In terms of 10-gram bars, gold prices in Delhi on 10 September were ₹14,355 for 22-carat gold (up ₹110) and ₹1,14,840 for 8 grams (up ₹880), while 24-carat gold stood at ₹15,073 per gram (up ₹116) and ₹1,20,584 for 8 grams (up ₹928). Mumbai recorded 22-carat gold at ₹14,305 per gram (up ₹110) and 24-carat gold at ₹15,020 per gram (up ₹115). Kolkata quoted 22-carat gold at ₹14,405 per gram and 24-carat gold at ₹15,125 per gram. 

Also Read: How to Invest in Gold Online

The city-wise variations reflected local demand conditions, transportation costs, and regional tax structures. Chennai’s higher 18-karat rate of ₹12,026 per gram compared to Mumbai’s ₹11,664 per gram highlighted the influence of local market dynamics on retail gold pricing. These regional differences are closely monitored by jewellers and consumers across India, as they affect the cost of jewellery and investment-grade gold products. 

China Buys 20 Tonnes, Extends Streak to 21 Months 

Amid the price volatility, global central banks continued their steady accumulation of gold reserves, providing a structural floor to the market. The People’s Bank of China purchased 20 tonnes of gold in the latest reporting period, marking its 21st consecutive month of purchases, taking its year-to-date buying to 60 tonnes and total reserves to 2,366 tonnes, according to World Gold Council data. This sustained institutional demand from central banks has been a consistent supportive factor for gold prices throughout 2026. 

The central bank buying trend reflects a broader diversification strategy among global monetary authorities, who have been increasing their gold allocations as a hedge against currency fluctuations and geopolitical risks. China’s 21-month buying streak represents one of the longest sustained accumulation periods in recent history, underscoring the strategic importance that central banks place on gold as a reserve asset. The 20-tonne purchase in the latest reporting period was consistent with the average monthly buying pace established over the past year. 

Rupee at 94.42, Dollar Index at 99.16 Shape Rates 

The rupee’s stability near ₹94.42 and the dollar index’s retreat from 99.16 to 98.93 and later 98.6 shaped domestic bullion pricing through the week. A stronger rupee typically makes imported gold cheaper in local terms, while a softer dollar supports international gold prices. The interplay between these currency movements, US rate expectations, and crude oil prices created a volatile environment for MCX gold and silver futures. 

Market participants tracked the US Producer Price Index and Consumer Price Index releases scheduled for 10 and 11 September, as these data points were expected to shape expectations ahead of the Federal Reserve’s 15-16 September policy meeting. Central bank gold purchase data from the World Gold Council remained a key structural indicator, with China’s 20-tonne purchase extending its 21-month buying streak. The week closed with spot gold at $4,312.20 per ounce, MCX gold near ₹1.52 lakh per 10 grams, and silver under pressure after its 5.5% single-day plunge on Thursday. The dollar index’s movement from 99.16 to 98.6 over the course of the week reflected shifting expectations around US monetary policy, with the initial hike-driven strength giving way to a softer tone as the market digested the implications of the inflation data. 

Key data points to monitor include the US Producer Price Index and Consumer Price Index releases, the Federal Reserve’s 15-16 September policy meeting, the Bank of Japan’s 18 September decision, rupee-dollar movement around ₹94.42, Brent crude above $101, and central bank gold purchase data from the World Gold Council. Technical levels identified during the week include MCX gold support near ₹1.50 lakh per 10 grams and silver support near ₹2.31 lakh per kg. 

Source 

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