Gold Slides 2% to $4,288; Silver Falls 3.7% to $63.90 on Hawkish Fed, Stronger Dollar and Rising Yields 

Mumbai, Sept 26: Gold and silver prices declined sharply during the week ended 25 September 2026, as hawkish US Federal Reserve commentary, a firmer dollar and a surge in US Treasury yields to multi-decade highs outweighed safe-haven demand from escalating Middle East tensions.  

Spot gold declined more than 2% for the week to settle near $4,288 per ounce, while spot silver lost nearly 3.7% to trade around $63.90 per ounce. On the domestic front, MCX gold October futures closed at ₹1,51,135 per 10 grams, down approximately 2% week-on-week, while MCX silver December futures settled at ₹2,33,850 per kilogram, down nearly 2% for the week. 

Spot Gold Falls 2% to $4,288 as Fed Hike Bets Jump to 70% and Yields Hit 5.15% 

International spot gold opened the week near $4,353 per ounce on 21 September and traded in a range of $4,245.60 to $4,378 before closing the week at $4,288.36 per ounce, down 2% from the previous week’s close of approximately $4,378. The metal hit its weekly low of $4,245.60 on Thursday, 24 September, a level last seen on 16 September, before staging a modest recovery on Friday. The weekly high of $4,378 was recorded early in the week on Monday. 

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

The dominant driver was the sharp repricing of US interest-rate expectations. Following the Federal Reserve’s 25 basis point rate hike to 3.75–4.00% on 16 September, two Fed policymakers — Philadelphia Fed President Anna Paulson and New York Fed President John Williams — indicated during the week that additional tightening may be necessary to curb inflation.  

Markets responded by raising the probability of an October rate hike to approximately 70%, up sharply from 55% a day earlier. US gold futures for December delivery edged 0.6% higher to $4,323.10 per ounce on Friday but remained lower for the week. The LBMA Gold Price PM was quoted at $4,415 per ounce earlier in the month, reflecting the benchmark’s premium over spot during periods of physical tightness. 

Silver Sinks 3.7% to $63.90 as Industrial Demand Fears Compound Rate Pressure 

Spot silver fell from a weekly open of approximately $66.22 per ounce to a close near $63.90 per ounce, a decline of nearly 3.7%. The metal touched a weekly high of $67.89 early in the week before losing ground steadily, bottoming near $63.26 on Thursday. On COMEX, silver futures rose slightly to $63.80 per ounce on Friday but remained on track for a weekly loss of almost 4%. The Shanghai Futures Exchange December contract traded at 16,304 CNY/kg, up 4.36% in local terms. 

Silver’s dual role as both a precious and an industrial metal amplified its decline. The five-day correlation between silver and US two-year Treasury yields stood at -0.88, reflecting the metal’s acute sensitivity to rate expectations. With manufacturing data showing softer export growth and hiring trends, industrial demand concerns added to the downward pressure already exerted by the stronger dollar and rising yields. 

MCX Gold October Futures Close at ₹1,51,135 as ₹1,50,000 Support Holds 

On the Multi Commodity Exchange, gold futures for October delivery opened the week at ₹1,53,500 per 10 grams on 21 September, down ₹881 from the previous close of ₹1,54,381. The contract declined through the week to an intraday low near ₹1,50,590 on Thursday before recovering to close at ₹1,51,135 per 10 grams on Friday, up ₹150 or 0.1% on the day. The domestic spot gold price gained approximately ₹1,377 to ₹1,51,377 per 10 grams on Thursday on MCX. 

Also Read: How to Invest in Gold Online

Analysts noted that the ₹1,50,000 level emerged as critical support during the week, with profit booking from higher levels continuing amid expectations of another Fed rate hike in October. The October futures contract’s weekly range spanned ₹1,50,000 to ₹1,54,400 per 10 grams. The MCX Gold Mini contract, which tracks the same underlying asset with smaller lot sizes, moved in tandem with the benchmark October contract throughout the week. 

MCX Silver December Settles at ₹2,33,850 with Open Interest Down 4.87% 

MCX silver futures for December delivery opened the week at approximately ₹2,40,004 per kilogram on 21 September, down ₹1,599 or 0.66% from the previous close of ₹2,41,603. The contract fell further on 23 September, depreciating ₹1,743 or nearly 1% to ₹2,37,574 per kg.  

By Friday, silver for December delivery had recovered ₹368 or 0.16% to close at ₹2,33,850 per kilogram, with a business turnover of 1,880 lots. Open interest in the counter slumped by 4.87% to 14,657 lots as traders reduced exposure amid elevated volatility. The MCX Silver Mini contract, designed for retail participants with smaller lot sizes, mirrored the price action of the December contract. 

24K Gold in Mumbai at ₹1,51,300 as ₹1,50,000 Emerges as Key Support 

In the domestic physical market, 24 karat gold (99.9% purity) was quoted at ₹1,51,580 per 10 grams nationally on 25 September, while 22 karat gold (91.6% purity) stood at ₹1,38,948 per 10 grams. City-wise, Mumbai recorded ₹1,51,300 for 24K gold and ₹1,38,692 for 22K, while Delhi quoted ₹1,51,040 and ₹1,38,453 respectively. Chennai recorded the highest 24K rate at ₹1,51,740, followed by Hyderabad at ₹1,52,050. Kolkata quoted ₹1,51,100 for 24K and ₹1,38,508 for 22K, while Bengaluru recorded ₹1,51,420 and ₹1,38,802. 

Domestic gold prices declined over 2% during the week, with the ₹1,50,000 mark serving as important support. The quoted retail prices are inclusive of import duties and Goods and Services Tax but exclude making charges and dealer margins. The government had raised the effective import duty on gold and silver to 15% in May 2026, comprising a 10% basic customs duty and a 5% Agriculture Infrastructure and Development Cess, which continues to influence domestic pricing. City-level variations reflect local taxes, dealer premiums, transportation costs and regional demand conditions. 

Silver 999 Fine Closes at ₹2,33,620 per kg in Mumbai as Industrial Demand Softens 

Silver 999 fine was quoted at ₹2,34,040 per kilogram nationally on 25 September. City-wise, Mumbai recorded ₹2,33,620 per kg, Delhi ₹2,33,220, Chennai ₹2,34,300, Kolkata ₹2,33,310, Bengaluru ₹2,33,800 and Hyderabad ₹2,33,990. Silver 925 sterling was quoted at ₹2,16,487 per kg. Silver prices declined approximately 2.6% over the month while remaining up around 70.8% year-on-year.  

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

The industrial demand component of silver — particularly from solar panel manufacturing, electronics and electric vehicles — remained under scrutiny as global manufacturing data showed softer export growth and hiring trends during the week. 

Dollar Index Rises 1% to Two-Month High of 101.2 as Treasury Yields Surge to 5.15% 

The US Dollar Index climbed more than 1% during the week to a two-month high of 101.2 on Thursday, marking its first back-to-back weekly gains since June, before easing to 101.09 on Friday. The stronger dollar made greenback-priced metals more expensive for holders of other currencies, directly pressuring gold and silver. 

The 10-year US Treasury yield surged to 5.15% on 24 September, its highest level since July 2007, while the 30-year yield touched 5.446%, the highest since June 2004. The two-year yield reached 4.947%, its highest since May 2024.  

Rising real yields increase the opportunity cost of holding non-yielding assets, and the simultaneous strength in both the dollar and yields created a dual headwind for precious metals. The rupee traded within a range of 95.57–95.97 against the dollar during the week, ending largely flat and providing limited cushion to domestic prices. 

Houthi Missile Strike on Saudi Arabia Lifts Oil 3% but Fails to Sustain Gold Rally 

Geopolitical tensions escalated on 24 September when a Houthi missile attack on Saudi Arabia revived supply-disruption fears, lifting Brent crude prices by approximately 3% to a one-week high of $105.45 per barrel. Gold initially slumped to its weekly low of $4,245.60 on the same day before recovering modestly, as the oil-driven inflation concerns reinforced expectations of further Fed tightening rather than generating sustained safe-haven demand. 

Reports also emerged during the week of potential US-Iran diplomatic negotiations over a phased reopening of the Strait of Hormuz, creating competing narratives that kept volatility elevated. Gold briefly climbed above $4,314 per ounce during intraday trading on 25 September but quickly trimmed gains to trade just above $4,295, up 0.49% in 24 hours but still down 1.76% over the past week. 

Gold ETFs Extend Inflow Streak to Ninth Week with $4.24 Billion 

Gold exchange-traded funds recorded net inflows of $4.24 billion in the week ending 18 September, extending their positive inflow streak to nine consecutive weeks, according to World Gold Council data. US investors contributed $2.21 billion to the inflows. As of 18 September, total investments in gold ETFs stood at $122.21 billion, with net inflows of $37.1 billion.  

The ETF data for the week ended 25 September was not yet available at the time of writing. On the silver side, the iShares Silver Trust recorded a $29 million outflow during the week as investors reduced exposure to the industrial metal. 

Gold-Silver Ratio Rises to 67.1 as Gold Outperforms Silver During Risk-Off Week 

The gold-silver ratio, calculated by dividing the gold price by the silver price, stood at approximately 67.1 at the end of the week, based on spot gold at $4,288 and spot silver at $63.90, compared with approximately 65.1 at the start of the week based on gold at $4,378 and silver at $67.28.  

The ratio rose because gold declined 2% while silver fell nearly 3.7%, indicating that silver underperformed gold during the risk-off week as its industrial demand component amplified losses from the stronger dollar and rising yields. Central banks bought a record 289 tonnes of gold in Q2 2026, a 62–74% jump from a year earlier, with China extending its buying streak to 22 consecutive months and adding approximately 20.2 metric tonnes in August, providing a structural floor under prices. 

Gold declined 2% to $4,288 and silver fell 3.7% to $63.90 during the week, pressured by a dollar index at 101.2, 10-year Treasury yields at 5.15%, and October Fed rate-hike expectations at 70%. MCX gold October closed at ₹1,51,135 and silver December at ₹2,33,850, with ₹1,50,000 serving as domestic gold support. 

Source 

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

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