Indian Gold Prices Fall as US Federal Reserve Raises Rates

Gold and silver prices in India faced downward pressure on September 17, 2026, driven by weak domestic demand and a hawkish shift in US monetary policy. In Delhi, gold prices fell by Rs 600 to Rs 1.55 lakh per 10 grams. Retail rates for 24-karat gold varied by city, ranging from ₹1,51,140 in Kolkata to ₹1,51,780 in Chennai per 10 grams, while 22-karat gold ranged from ₹1,38,545 to ₹1,39,132.

The United States Federal Reserve triggered the decline by raising its benchmark interest rate by 25 basis points to 3.75-4 per cent, marking the first increase in three years. Fed Chair Kevin Warsh cited persistent inflationary pressures and raised the median rate outlook for the end of 2026 to 4.1 per cent from 3.8 per cent.

Domestic trends diverged from global markets, where spot gold rose 1.24 per cent to USD 4,317.11 per ounce and silver gained nearly 2 per cent to USD 64.06 an ounce. This global recovery followed a pullback in the dollar index and Treasury yields. In India, silver prices remained relatively steady, quoted at ₹2,31,680 per kilogram across major cities and Rs 2.42 lakh per kilogram in Delhi. Major retailers including Tanishq, Joyalukkas, and Malabar Gold & Diamonds reported 22K gold rates between ₹14,065 and ₹14,110 per gram.