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Gold prices continued to slide on Tuesday as investors reassessed the outlook for US interest rates, inflation and global oil prices. The latest decline has pushed gold close to a seven-week low in international markets, while domestic prices have also come under pressure.
In the domestic futures market, MCX gold for October 2026 delivery fell ₹235 to ₹1,46,569 per 10 grams during Tuesday's trade. Gold had already lost around ₹4,300 per 10 grams over the previous two sessions, highlighting the sharp correction in the precious-metal market. Silver also remained weak, with September futures falling to around ₹2.26 lakh per kg.
One of the major factors behind the recent pressure is the rise in crude oil prices. Higher oil prices can increase inflation across economies, raising concerns that central banks, including the US Federal Reserve, may need to maintain or raise interest rates for longer. Higher interest rates generally make non-yielding assets such as gold relatively less attractive compared with interest-bearing investments.
Market expectations for another Federal Reserve rate hike in October have also strengthened. Reuters reported that the probability of an October Fed hike had risen to 72.5%, while ET reported a probability of about 70.3% based on CME FedWatch data.
Meanwhile, international spot gold was around $4,124.57 per ounce, remaining close to its lowest level since August 5. The stronger dollar and elevated-rate expectations have added to the pressure on precious metals.
There is some variation between quoted retail sources because jewellery prices can differ by jeweller, city, taxes and other charges. Economic Times' Jalandhar gold-rate listing for September 28 showed 24K gold at ₹1,48,000 per 10 grams and 22K gold at ₹1,40,950 per 10 grams, excluding GST and other applicable charges.
Another city-rate tracker, AajTak, listed Jalandhar's September 29 indicative rate at ₹1,52,820 per 10 grams for 24K and ₹1,40,090 for 22K, illustrating why buyers should verify the final quote with their local jeweller before purchasing.
At major jewellery retailers, 22K gold was quoted around ₹13,640 per gram on September 29 at Malabar Gold & Diamonds, Kalyan Jewellers and Joyalukkas in several major cities, while Tanishq quoted ₹13,710 per gram.
Apart from interest-rate expectations, investors are also watching US-Iran talks and geopolitical developments in the Middle East. Oil prices have risen amid concerns over possible supply disruptions, creating a complicated environment for gold: geopolitical uncertainty can support safe-haven demand, but the inflation and higher-rate consequences of expensive oil can simultaneously weigh on the metal.
For gold buyers, the latest fall means retail prices may continue to fluctuate rather than moving in a straight direction. Jewellery prices also include factors such as purity, GST, making charges and jeweller-specific premiums, so headline bullion rates should not be treated as the final purchase price.
