Gold rate today, September 21: Check latest 24K and 22K prices in major cities

Gold prices in India have moved higher over the past few days, with the indicative national rate for 24K gold rising to around ₹15,568 per gram on September 21 from ₹15,443 on September 19. The rate for 22K gold also increased to ₹14,270 per gram from ₹14,156 during the same period, while 18K gold was quoted at ₹11,676 per gram on September 21.

Here is a look at the gold prices in major Indian cities today.

City-wise silver rate

Is inflation a major determinant of gold prices in India?

Inflation in India is not, by itself, a major determinant of domestic gold prices. While higher inflation can influence gold prices, the more important factor is how inflation affects interest rates, particularly in the US.

When inflation rises sharply in the US, the Federal Reserve may respond by raising interest rates. Higher rates can make interest-bearing assets such as US government bonds more attractive compared with gold, which does not generate regular interest. This can put downward pressure on gold prices.

Gold prices and US bond yields therefore often tend to move in opposite directions. As bond yields rise, demand for gold can weaken, while falling yields can support gold prices.

For Indian investors, global inflation trends and the resulting direction of US interest rates are therefore important factors to watch. Domestic inflation also matters, but it is not the sole or primary driver of gold prices.

Before investing in gold, investors should closely monitor interest-rate trends, inflation data and global market conditions.