Gold and silver prices fluctuate in India amid US Fed policy outlook

Gold and silver prices in India have experienced significant volatility throughout early October 2026, influenced by international bullion markets, US Federal Reserve interest rate expectations, and the US dollar.

In major Indian cities, 24-carat gold prices have fluctuated around the ₹1,49,000 to ₹1,50,700 per 10 grams range. For instance, rates in Delhi and Mumbai have seen recent shifts, with Delhi recording 24-carat gold at approximately ₹1,50,628 per 10 grams on October 4. Silver prices have also seen movement, with rates in several major cities like Delhi, Mumbai, and Kolkata stabilizing around ₹2,35,000 per kilogram, while Chennai has seen higher rates near ₹2,45,000 per kilogram.

Market analysts are closely monitoring the upcoming US Federal Reserve meeting led by Kevin Warsh. While there was initial speculation regarding interest rate hikes, recent lower-than-expected inflation data has weakened that possibility. Additionally, HSBC has revised its gold price forecasts downward for 2026 and 2027, suggesting continued downward pressure on prices unless they drop toward the $4,000 per ounce level, which could trigger central bank buying.