Gold and silver prices across India experienced a sharp drop during early trading hours on Tuesday, 29 September 2026. Domestic retail rates fell in response to a sell-off in the international market, driven by persistent US-Iran geopolitical tensions over the Strait of Hormuz and elevated global interest rate expectations.
On the Multi Commodity Exchange (MCX), Gold 5 October futures declined to ₹1,46,513 per 10 grams at around 9:00 am, while MCX Silver 4 December contracts dropped to ₹2,27,390 per kg. International bullion hovered around $4,125 per ounce after plunging nearly 4% to hit a seven-week low.
Global Catalysts Driving the Bullion Sell-Off
The domestic market slide closely tracks broader global economic shifts. Energy supply concerns remain critical as the ongoing geopolitical stalemate between Washington and Tehran keeps crude oil costs elevated.
“Iranian officials privately expressed pessimism about reaching a deal to end hostilities with Washington before the US midterm elections in November, after US President Donald Trump rejected their latest proposal to reopen the critical waterway within seven days,” Bloomberg reported.
Sustained energy costs continue to exert upward pressure on inflation metrics, reinforcing market expectations that the US Federal Reserve will maintain or increase interest rates. Higher interest rates typically reduce the appeal of non-yielding assets like gold, accelerating sell-offs across futures markets.
Benchmark Indian Retail Gold and Silver Rates
In the physical retail market, daily prices published by the Indian Bullion Association (IBA) reflected the broader decline. On Monday, 24-carat gold stood at ₹1,47,570 per 10 grams, while 22-carat gold was recorded at ₹1,35,273 per 10 grams. Benchmark Silver (999 Fine) rested at ₹2,26,240 per kg.
Buyers should note that local retail billing includes additional charges such as jeweller making fees, state levies, and 3% Goods and Services Tax (GST), which alter final storefront prices.
City-Wise Gold and Silver Rates on September 29
Retail rates vary across major metros due to transportation costs, local demand dynamics, and regional octroi taxes.
Gold & Silver Rates in Mumbai
- 24 Karat Gold (10g): ₹147,250
- 22 Karat Gold (10g): ₹134,979
- Silver 999 Fine (1kg): ₹225,870
Gold & Silver Rates in New Delhi
- 24 Karat Gold (10g): ₹146,990
- 22 Karat Gold (10g): ₹134,741
- Silver 999 Fine (1kg): ₹225,490
Gold & Silver Rates in Bengaluru
- 24 Karat Gold (10g): ₹147,360
- 22 Karat Gold (10g): ₹135,080
- Silver 999 Fine (1kg): ₹226,050
Gold & Silver Rates in Kolkata
- 24 Karat Gold (10g): ₹147,050
- 22 Karat Gold (10g): ₹136,015
- Silver 999 Fine (1kg): ₹227,850
Gold & Silver Rates in Hyderabad
- 24 Karat Gold (10g): ₹147,520
- 22 Karat Gold (10g): ₹135,227
- Silver 999 Fine (1kg): ₹226,190
Gold & Silver Rates in Chennai
- 24 Karat Gold (10g): ₹147,710
- 22 Karat Gold (10g): ₹135,401
- Silver 999 Fine (1kg): ₹226,490
Historical Performance and Multi-Year Returns
Despite current short-term volatility, precious metals have delivered historic long-term returns for Indian investors.
Gold registered its most powerful rally since 1979, gaining over 75% driven by safe-haven demand, central bank accumulation, and global macroeconomic instability.
Silver has displayed even higher momentum due to strong industrial demand and currency fluctuations, rising from roughly ₹78,600 per kg in 2023-2024 to peak above ₹2,40,000 per kg in September 2026.
Frequently Asked Questions (FAQs)
What are the 24K and 22K gold rates in Mumbai today?
On September 29, 24-karat gold in Mumbai is trading at ₹147,250 per 10 grams, while 22-karat gold stands at ₹134,979 per 10 grams. Silver 999 Fine is priced at ₹225,870 per kg.
Why did gold prices drop sharply on September 29?
Gold prices declined due to a 4% drop in international spot prices driven by prolonged US-Iran tensions in the Strait of Hormuz, sustained high energy prices, and hawkish interest rate expectations from the US Federal Reserve.
What is the difference between 24K and 22K gold?
24-karat gold contains 99.9% pure gold and is used primarily for investment bars and coins. 22-karat gold contains 91.6% gold mixed with metal alloys to increase durability, making it the industry standard for crafted jewelry.
How much GST is charged on gold jewelry in India?
A standard 3% Goods and Services Tax (GST) is applied to the combined value of gold and making charges. Additionally, a 5% GST applies specifically to the making charges billed by the jeweler.
Where can I check official daily gold rates in India?
Daily benchmark rates are updated by official market entities, including the Indian Bullion Association (IBA) and exchange prices tracked on the Multi Commodity Exchange (MCX).
Manish Kumar began his professional journey in digital marketing and performance marketing, and currently works as a Digital Marketing Excutive and SEO expert. With over 3 years of professional experience, he handles both strategy and execution. Currently, he manages digital marketing and performance marketing at ‘Shabd Sanchi’ (shabdsanchi.com).
