There are many reasons behind this huge fall in the prices of gold and silver, such as a strong US dollar, an increase in crude oil prices, and heavy selling in the global markets.
Big drop in the price of gold and silver
Gold and silver prices are experiencing significant declines. According to the India Bullion and Jewelers Association (IBJA), on Monday, September 28, the price of 10 grams of 24-carat gold fell by ₹4,133, bringing the price to ₹1.48 lakh. Silver also saw a significant decline during this period, falling ₹9,297 to ₹2.23 lakh yesterday.
Gold price today
Today the price of 24 carat gold is Rs 1,47,980 per 10 grams.
Today the price of 22 carat gold is Rs 1,35,550 per 10 grams.
Today the price of 18 carat gold is Rs 1,10,985 per 10 grams.
City-wise gold prices
| City | 24 Carat Gold Price (per gram) | 22 Carat Gold Price (per gram) |
| Delhi | 15,031 | 13,779 |
| Mumbai | 15,016 | 13,764 |
| Kolkata | 15,016 | 13,764 |
| Chennai | 14,908 | 13,665 |
| Bengaluru | 15,016 | 13,764 |
| Hyderabad | 15,016 | 13,764 |
| Kerala | 15,016 | 13,764 |
| Pune | 15,016 | 13,764 |
| Vadodara | 15,021 | 13,769 |
Gold and silver under pressure
According to a report by news agency PTI, Gaurav Garg, head of research at brokerage platform Lemon, said that gold and silver prices declined on Monday as a strong dollar kept pressure on these precious metals.
Garg said Brent crude rose 4% yesterday to $108.53 per barrel, as tensions between the two countries renewed after Donald Trump rejected Iran's seven-day peace proposal and raised concerns about energy supplies through the Strait of Hormuz.
How much did gold and silver become cheaper in September?
Gold prices have fallen by a significant ₹8,000 so far in September. Silver has also fallen by ₹14,000. On August 31st, the price of gold per 10 grams was ₹1.56 lakh, which is now ₹1.48 lakh. Similarly, the price of 1 kg of silver has fallen from ₹2.37 lakh in August to ₹2.23 lakh.
The US Federal Reserve (US Fed) has increased interest rates by 25 basis points (0.25%) for the first time in 3 years, due to which the price of gold has fallen. In fact, when the US central bank increases interest rates, investors consider investing in government bonds (US Treasury Bonds) and bank fixed deposits to be safer because these offer higher returns than gold. This is the reason why, when interest rates rise, investors start withdrawing money from gold and investing in it. However, amid the ongoing US-Iran war and economic uncertainties, it is possible that investors may again turn to gold as a safe investment.
