Gold Rebounds 1.2% to $4,190 as Crude Retreats; Silver Slips 2.1% on Industrial Demand Concerns

Mumbai, Oct 10: Gold prices staged a late-week recovery to post a weekly gain of approximately 1.2%, buoyed by falling crude oil prices following US President Donald Trump’s indication that the US would not attack Iran before the November midterm elections, while silver extended its decline amid worsening industrial demand sentiment and a rising gold-silver ratio.

Spot gold closed the week at $4,190.49 per ounce, rebounding from a nine-week low touched on Thursday, while spot silver ended near $61.50 per ounce, down over 2% for the week. In the domestic market, MCX December gold futures closed at ₹1,51,265 per 10 grams, up 1.11% on Friday, while MCX December silver settled at ₹2,25,158 per kilogram for a weekly decline of approximately 0.4%.

Gold Recovers from Nine-Week Low of $4,110 as Crude Retreats Below $103 on Iran Talks

International spot gold (XAUUSD) opened the week at approximately $4,138 per ounce on Monday, 5 October 2026, following a second consecutive weekly decline that had brought prices to their lowest levels since the August peak of $4,700. The metal touched a weekly low of $4,110 per ounce on Thursday, 8 October, before staging a sharp recovery to a weekly high of $4,215.90 on Friday, 9 October, according to Times Now data. The previous week’s close stood at approximately $4,138, with the week ending at $4,190.49 — a gain of approximately $52 or 1.2%.

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The week’s trading was marked by extreme volatility. Gold fell nearly 1% on Monday as a stronger US dollar and elevated bond yields weighed on the metal, before recovering modestly on Tuesday and Wednesday. The sharpest decline occurred on Thursday, when gold held near a nine-week low as Strait of Hormuz tensions raised expectations of further Federal Reserve rate hikes, with the metal down approximately 20% since the US-Iran conflict erupted in late February. Friday brought a dramatic reversal, with spot gold gaining 1.4% to $4,190.49 by 11:44 AM EDT (15:44 GMT), as crude oil prices retreated following Trump’s comments on Iran.

The COMEX gold futures market mirrored spot movements. COMEX gold opened at $4,169.40 per ounce on Monday, with the previous close at $4,162.30, and traded at $4,172.10 during the session. The London Bullion Market Association (LBMA) gold price, a benchmark for physical delivery, tracked the spot market closely, though specific LBMA benchmark levels for the week were not separately reported. The key distinction is that spot gold represents over-the-counter physical trading, COMEX futures reflect standardised exchange-traded contracts, and the LBMA benchmark is a reference price set through an auction process.

MCX Gold Falls to ₹1,47,391 Midweek Before Friday Rebound Lifts December Contract to ₹1,51,265

On the Multi Commodity Exchange (MCX), the December gold contract opened Monday at ₹1,51,197 per 10 grams, up ₹807 from the previous close of ₹1,50,390, but quickly reversed gains to trade ₹965 lower at ₹1,49,425 by midday. By 12:30 PM on Monday, MCX gold was trading at ₹1,47,391 per 10 grams, down 0.32%. On Tuesday, the December contract traded at ₹1,49,212, marginally lower, with sentiment weighed down by a firm dollar and elevated bond yields. The contract declined further on Wednesday, falling ₹750 or 0.5% to ₹1,49,370 at 3:05 PM, as the RBI’s rate hike added to pressure.

Thursday saw a modest recovery, with the benchmark December contract opening ₹586 higher at ₹1,49,689 on buying at lower levels. By Friday, gold prices moved sharply higher, with MCX 24-carat gold futures climbing ₹1,655 or 1.11% to ₹1,51,265 per 10 grams by noon, recovering from the previous session’s settlement at ₹1,49,610. The weekly low on MCX was approximately ₹1,47,391 on Monday, while the weekly high was ₹1,51,265 on Friday.

For the MCX Gold Mini contract, prices tracked the benchmark closely. According to Economic Times data, the Gold M Rate on 6 October 2026 stood at ₹1,54,658 per 10 grams with a change of ₹1,481 or 0.97%. The broader market saw gold futures touch a high of ₹1,80,779 per 10 grams earlier in 2026 before the recent correction brought prices down approximately 23% from their January peak.

Silver Slides 2.1% as Gold-Silver Ratio Hits 69; MCX December Contract Ends at ₹2,25,158

International spot silver (XAGUSD) opened the week at approximately $61.60 per ounce on Monday, with COMEX silver futures opening at $60.70 against a previous close of $60.41. The metal briefly rallied to a weekly high of approximately $63.40 on Monday as silver seized leadership of the physical complex, with the gold-silver ratio pulling down to roughly 67.5 from near 68.6 on the previous Friday. However, the rally proved short-lived. By Tuesday, the ratio had risen to 67.98, and by Thursday, it had widened to nearly 69:1, meaning it took about 69 ounces of silver to buy one ounce of gold.

Silver’s weekly low of $58.73 was touched during the sell-off, with the metal showing a constructive rebound from that level by Friday. For the week, spot silver declined approximately 2.1% from its opening level. The metal’s dual role as both a precious and industrial commodity came into sharp focus during the week, with industrial demand concerns weighing on prices even as gold recovered.

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On the MCX, the December silver contract opened Monday at ₹2,25,900 per kilogram, up ₹23 from the previous close of ₹2,25,877, and traded ₹923 higher at ₹2,26,800 during the session. By 12:30 PM on Monday, silver was trading at ₹2,27,150, registering a gain of 0.56%. The contract declined to ₹2,25,621 by Tuesday, down ₹466 or 0.21%, with a business turnover of 1,938 lots. Wednesday saw a steeper decline, with December silver trading at ₹2,24 lakh per kilogram, lower by 1.12%, before falling further to ₹2,21,747 by the end of the session, down 2.42%. Thursday brought a marginal recovery to ₹2,21,021, still down 1.14%. Friday saw silver surge 1.77% to close at ₹2,25,158 per kilogram. The weekly high on MCX was approximately ₹2,27,365 on Wednesday, while the weekly low was ₹2,21,021 on Thursday.

24K Gold Rises ₹114 per Gram to ₹15,071; Silver Holds at ₹2,350 per 10 Grams in Most Cities

Domestic gold prices rose in line with international trends, with 24-carat gold reaching ₹15,071 per gram on Friday, 9 October 2026, up ₹114 from the previous day, according to Zee News. Prices of 22-carat and 18-carat gold increased by ₹105 and ₹85, respectively. On Tuesday, 6 October, 24K gold was priced at ₹14,917 per gram, while 22K and 18K gold stood at ₹13,674 and ₹11,188. By Wednesday, Delhi’s 24K rate reached ₹15,038 per gram, compared with ₹15,023 in Mumbai. Prices remained largely stable across major cities on Thursday.

Silver retail prices remained relatively steady throughout the week. On Monday, 999-purity silver was priced at approximately ₹2,29,000 per kilogram across major cities. On Thursday, rates stood at ₹2,350 per 10 grams in Mumbai, Delhi, Kolkata, Bengaluru, Pune, Vadodara and Ahmedabad. Chennai and Hyderabad recorded higher prices of ₹2,450 per 10 grams. Mumbai’s silver price was quoted at ₹2,20,399 per kilogram on Tuesday.

Retail prices may include GST and vary by jeweller, city and applicable charges. Differences in regional demand, dealer margins and local market conventions contribute to price variations, particularly between southern and western India.

Gold ETF Inflows Hit $496.2 Million in September; Central Banks Add 39 Tonnes in August

The World Gold Council’s 7 October 2026 report showed that Indian gold ETFs attracted $496.2 million in September, nearly double August’s $256.2 million. Third-quarter inflows reached $889.4 million, while 2026 inflows totalled $4.71 billion. Globally, gold ETFs recorded a record $31 billion in Q3.

Central bank purchases also supported gold prices. China increased its gold reserves for the 23rd consecutive month in September, adding 740,000 ounces to reach 77.47 million ounces. In August, global central banks purchased 39 tonnes net, led by Poland and Uzbekistan, while Turkey resumed buying and Russia reduced its holdings.

Silver Demand Shifts as Easing US-Iran Tensions Support Gold Recovery

The precious metals market faced mixed signals during the week as changing industrial demand patterns and geopolitical developments influenced prices. According to industry analysis, declining photovoltaic demand is reshaping silver’s outlook, while artificial intelligence (AI), data centres and electrical applications are creating new sources of demand. The World Silver Survey estimated industrial demand at approximately 657 million ounces in 2025, accounting for 58% of total demand. However, weaker industrial fabrication and rising prices have raised concerns about a potential silver market surplus by 2027.

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

Geopolitical tensions also influenced trading. On 5 October, Yemen’s Saudi-backed government announced a military campaign against Iran-backed Houthis, supporting safe-haven demand. By 7 October, gold remained near nine-week lows amid Strait of Hormuz concerns and expectations of higher US interest rates. On 9 October, US President Donald Trump cited productive discussions with Tehran and ruled out an attack before November’s midterm elections. Oil prices eased, helping reduce inflation concerns and supporting gold’s recovery.

Gold-Silver Ratio Widens to 69 as Gold Outperforms; Silver’s Industrial Weakness Diverges

The gold-silver ratio, which measures how many ounces of silver are needed to buy one ounce of gold, widened from approximately 67.5 on Monday to 69 by Thursday, reflecting gold’s outperformance relative to silver during the week. The ratio started the week at approximately 68.6 on the previous Friday, briefly narrowed to 67.5 on Monday as silver rallied, but subsequently widened as silver’s industrial demand concerns weighed more heavily than gold’s safe-haven appeal.

The divergence between the two metals was driven by their distinct fundamental drivers. Gold benefited from central bank buying, ETF inflows, and safe-haven demand amid Middle East tensions, while silver faced headwinds from declining photovoltaic demand, a potential shift to surplus by 2027, and broader industrial weakness. The ratio’s move from 67.5 to 69 indicates that gold outperformed silver by approximately 2.2% during the week.

India Withdraws 3% IGST Exemption on Gold Imports; Festive Demand Cautious at ₹1.50 Lakh

The Indian government announced on Thursday, 8 October 2026, that it had withdrawn a key tax benefit on gold, silver, and platinum imported by banks and state-nominated agencies, subjecting shipments to a 3% Integrated Goods and Services Tax (IGST) effective from April 1, 2026. Revenue Secretary Arvind Shrivastava stated that the exemption removal would raise costs for the main channels supplying one of the world’s largest bullion markets.

The government had previously raised import duty on gold and silver to 15% from 6% in May 2026 to curb non-essential imports. The withdrawal of the IGST exemption adds to the cost structure for domestic bullion imports, potentially widening the gap between international and domestic prices.

On the demand side, gold prices softening near the ₹1.50 lakh benchmark ahead of the major festive and wedding season sparked buying interest, with jewellers reporting occasional sales spikes of 15-20% during peak festive periods. However, gold demand in India remained sluggish during the week as prices rebounded, with trading in top consumer China subdued during the holiday-truncated period. Indians will celebrate Dussehra in October and Diwali in early November, when buying gold is considered auspicious.

Gold’s weekly gain of 1.2% to $4,190 was driven by the retreat in crude oil prices and softer US Treasury yields, while silver’s 2.1% decline reflected industrial demand concerns and a widening gold-silver ratio at 69:1. The RBI’s rate hike and the withdrawal of the 3% IGST exemption on bullion imports raised domestic costs, even as festive demand showed cautious interest near the ₹1.50 lakh per 10 grams level. Key variables to monitor include US inflation data, the December Fed meeting probability at 70.5%, and the sustainability of crude oil’s retreat below $103 per barrel.