Gold and silver prices in India witnessed a sharp rebound on Tuesday, tracking a strong rally in the global bullion market. The domestic MCX gold price recovered its previous losses, jumping over 1% to cross the ₹1.55 lakh mark per 10 grams, while MCX silver prices also saw a significant uptick due to renewed buying interest.
The upward momentum for the yellow metal comes as traders globally seek safe-haven assets amid escalating tensions in the , while also awaiting crucial data due later this week, which could shape the Federal Reserve’s monetary policy trajectory.
Here’s a look at the latest gold prices across major Indian cities on September 1:
In the retail market, gold is primarily sold in 24-karat and 22-karat purities. While 24-karat represents the purest form of the metal, 22-karat is widely preferred for crafting jewellery in India due to its added durability.
| City | 24K Gold Rate (per 10 gm) | 22K Gold Rate (per 10 gm) | Silver 999 Fine (per 1 kg) |
|---|---|---|---|
| New Delhi | ₹154,460 | ₹141,588 | ₹240,280 |
| Mumbai | ₹154,790 | ₹141,891 | ₹240,380 |
| Bengaluru | ₹154,910 | ₹142,001 | ₹240,570 |
| Kolkata | ₹154,590 | ₹141,708 | ₹240,060 |
| Hyderabad | ₹155,040 | ₹142,120 | ₹240,760 |
| Chennai | ₹155,180 | ₹142,248 | ₹241,400 |
Safe-haven demand sparks global rally
In the international market, spot gold advanced strongly, trading above $4,520 per ounce by 0057 GMT, fully recovering from the brief dip seen in previous sessions. US gold futures for December delivery also rose, gaining nearly 1.2% to hover around $4,565.30.
The global surge indicates that investors are largely brushing off the recent hawkish remarks made by US Federal Reserve Chair at the Jackson Hole economic symposium. While Warsh cautioned that inflation is not easing significantly and reaffirmed the central bank’s commitment to its 2% target, market participants are aggressively pivoting back to bullion to hedge against broader macroeconomic uncertainties.
Geopolitical tensions fuel the surge
Gold’s upside is being heavily supported by rising oil prices and escalating geopolitical risks. Safe-haven buying spiked after the US military recently targeted Iranian rocket launchers preparing to deploy mines into the Strait of Hormuz, marking the first such military engagement in the region in over a month.
With this latest rally, the precious metal has cemented a gain of over 10% in August. According to Trading Economics, this sustained underlying strength is driven largely by the so-called debasement trade, as investors continue to flock to gold to protect their portfolios amidst shifting global financial conditions.