- Gold prices traded weak on August 31 after Fed Chair Kevin Warsh signaled a hawkish inflation stance, which triggered profit booking.
- The COMEX gold futures slipped 1.23 percent to $4,474.30 per ounce, and silver declined 1.71 percent to $65.85 per ounce during the early trading on August 31.
- The domestic MCX futures for the October contract opened down 0.91 percent to ₹1,54,520 per 10 grams, and the silver contract for September fell 1.66 percent to ₹2,33,500 per kilogram.
- In Delhi, the 24K gold rate was ₹15,905 per gram, making it the highest among major cities.
- On August 28, domestic spot gold on MCX edged towards ₹1,58,854 per 10 grams, and silver to ₹2,43,862 per kilogram.
- Delhi has consistently priced at or near the top of the national range, a function of local commodity logistics and the city’s role as an entry point for a disproportionate share of India’s bullion imports.
- Goldman Sachs maintained its $4,900 per troy ounce year-end target for gold.
- At current rupee-dollar rates, this translates to roughly ₹18,600 per gram in Delhi, significantly above the current market rate.
Gold prices slipped on August 31, following a hawkish signal from Fed Chair Kevin Warsh, which led to profit booking. The COMEX gold futures fell 1.23% to $4,474.30 per ounce, while silver dropped 1.71% to $65.85 per ounce.12
In India, Delhi's 24K gold is priced at ₹15,905 per gram, making it the highest in the country, with a premium driven by local market dynamics and upcoming festivals. The 22K gold rate stands at ₹14,577 per gram, reflecting the IBJA morning benchmark.46
Analysts predict a cautious market for precious metals, with Goldman Sachs maintaining a year-end target of $4,900 per ounce, which translates to approximately ₹18,600 per gram in Delhi, significantly above current rates. This price spike is anticipated as buyers prepare for the festival season, which traditionally sees increased demand.8
The Delhi market has consistently held the highest prices due to its role as a major entry point for bullion imports and local logistics. The upcoming festival season, particularly Navratri and Diwali, is expected to further influence buying behavior, despite the current high prices.
“Goldman Sachs maintains its $4,900 per troy ounce year-end Comex target, implying a potential ₹18,600 per gram in Delhi—over ₹2,600 above Sunday's rate. Meanwhile, the Federal Reserve's September rate decision is the swing variable, with a cut seen weakening the dollar and accelerating gold's move.”
