Gold and silver prices fell sharply on Monday, with MCX futures witnessing a steep decline. Rising crude oil prices, higher bond yields and expectations of another US Federal Reserve rate hike are putting pressure on precious metals
Gold and silver prices fell sharply on Monday as rising crude oil prices fuelled inflation concerns and strengthened expectations of further interest rate hikes by the US Federal Reserve.
On the domestic market, MCX silver futures for September 2026 delivery declined by Rs 6,661 to Rs 2,28,035 per kg. Gold futures for October 2026 delivery fell Rs 3,214 to Rs 1,47,667 per 10 grams.
In international markets, spot gold dropped 1.5% to $4,223.95 per ounce as of 0117 GMT. US gold futures also declined 1.5% to $4,257.90 per ounce.
Other precious metals followed the downward trend. Spot silver fell 2.6% to $62.64 per ounce. Platinum declined 2.1% to $1,741.45, while palladium dropped 2.1% to $1,239.95.
Also read | RBI could hike rates by 75-100 bps amid persistent oil and inflation pressures: Report
Why are gold prices falling today?
Gold prices are under pressure as crude oil prices and bond yields rise, raising concerns about inflation and the possibility of tighter monetary policy.
Higher oil prices have heightened inflation risks amid uncertainty over global supply. This has strengthened expectations that the US Federal Reserve could raise interest rates further.
The developments come amid tensions involving the United States, Israel and Iran. Iran has said diplomacy remains the only way to resolve the conflict.
US President Donald Trump said he had rejected an Iranian proposal to reopen the Strait of Hormuz and end the fighting. Oil prices subsequently recovered by more than 1%.
Rising bond yields have also weighed on gold. Higher yields make interest-bearing assets more attractive compared with gold, which does not generate interest.
Markets are also tracking expectations of another rate hike by the US Federal Reserve. CME FedWatch data showed a 68.1% probability of a 25-basis-point hike at the Fed's October-end meeting, compared with 31.9% earlier.
Gold rates today in major Indian cities
Gold prices vary across cities due to local taxes, transportation costs and other market factors.
According to the rates shown for September 28, 2026, the prices per gram are:
| City | 24K Gold | 22K Gold | 18K Gold |
|---|---|---|---|
| Chennai | Rs 15,017 | Rs 13,765 | Rs 11,535 |
| Mumbai | Rs 15,017 | Rs 13,765 | Rs 11,263 |
| Delhi | Rs 15,032 | Rs 13,780 | Rs 11,278 |
| Kolkata | Rs 15,017 | Rs 13,765 | Rs 11,263 |
| Bengaluru | Rs 15,017 | Rs 13,765 | Rs 11,263 |
| Hyderabad | Rs 15,017 | Rs 13,765 | Rs 11,263 |
| Kerala | Rs 15,017 | Rs 13,765 | Rs 11,263 |
| Pune | Rs 15,017 | Rs 13,765 | Rs 11,263 |
| Vadodara | Rs 15,022 | Rs 13,770 | Rs 11,268 |
| Ahmedabad | Rs 15,022 | Rs 13,770 | Rs 11,268 |
What is the gold price outlook?
Gold prices are likely to remain sensitive to movements in crude oil, bond yields and the US dollar.
Developments in US-Iran diplomatic efforts and expectations surrounding the Federal Reserve's October policy decision could influence the direction of prices.
A shift towards lower interest rates could support gold. However, persistent inflation concerns and expectations of further rate hikes could keep prices under pressure.
Investors are closely tracking crude oil prices, the dollar index and geopolitical developments.
The outlook for gold and silver will also depend on the progress of US-Iran peace talks and changes in expectations about US interest rates.
Published: 28 Sept 2026, 12:53 pm IST
ABOUT THE AUTHOR
Related Topics
Disclaimer: Kindly avoid objectionable, derogatory, unlawful and lewd comments, while responding to reports. Such comments are punishable under cyber laws. Please keep away from personal attacks. The opinions expressed here are the personal opinions of readers and not that of Mathrubhumi.