Gold prices in India’s retail market edged lower on Monday, October 12, following developments in the Middle East that added uncertainty to global financial and commodity markets. Silver prices also recorded a decline, while investors monitored geopolitical tensions and fresh gold purchases by China’s central bank.
According to a report by CNBC, US President Donald Trump said he would consider joining Saudi Arabia in its military response against Iran-backed Houthi forces in Yemen. The remarks followed a deadly attack on Riyadh’s main airport and raised concerns about a possible expansion of the conflict.
Meanwhile, China’s central bank increased its gold reserves by approximately 23 tonnes in September, according to data from the State Administration of Foreign Exchange. CNBC reported that this was the People’s Bank of China’s largest monthly purchase in nearly three years and extended its gold-buying streak to the longest since at least 2015.
Against this backdrop, both 24-carat and 22-carat gold prices slipped slightly in major Indian cities. On the Multi Commodity Exchange (MCX), gold futures were down 0.41% at ₹1,51,100 per 10 grams, while silver futures declined around 0.16% to ₹2,25,770 per kilogram at approximately 9:13 am.
Gold and Silver Rates in Major Cities on October 12
Gold jewellery is generally sold in 22-carat and 24-carat varieties. While 24-carat gold is considered the purest form, 22-carat gold is commonly used to make ornaments because it offers greater durability.
The following are the reported gold and silver prices across six major Indian cities on October 12.
| City | 24K Gold (₹ per 10g) | 22K Gold (₹ per 10g) | Silver 999 Fine (₹ per kg) |
|---|---|---|---|
| New Delhi | ₹1,50,560 | ₹1,38,013 | ₹2,24,970 |
| Mumbai | ₹1,50,820 | ₹1,38,252 | ₹2,25,360 |
| Bengaluru | ₹1,50,940 | ₹1,38,362 | ₹2,25,540 |
| Kolkata | ₹1,50,620 | ₹1,38,068 | ₹2,25,060 |
| Hyderabad | ₹1,51,060 | ₹1,38,472 | ₹2,25,720 |
| Chennai | ₹1,51,400 | ₹1,38,783 | ₹2,26,270 |
Among the listed cities, Chennai recorded the highest quoted 24-carat gold rate at ₹1,51,400 per 10 grams. New Delhi had the lowest listed rate at ₹1,50,560 per 10 grams.
For silver, Chennai reported the highest price among these cities at ₹2,26,270 per kilogram, while New Delhi recorded ₹2,24,970 per kilogram.
What Is Influencing Gold and Silver Prices?
Geopolitical developments remain an important factor for precious metals. Trump’s remarks about possible US involvement alongside Saudi Arabia have added uncertainty to the outlook for the Middle East, while concerns about the broader Iran-related conflict continue to draw attention from global markets.
Central-bank demand is another factor investors are watching. China’s purchase of around 23 tonnes of gold in September highlights continued buying by the country’s central bank, according to the reported data.
Domestic gold and silver prices are also influenced by international bullion rates and currency movements. As a result, prices in India can change even when retail rates appear relatively stable over short periods.
Disclaimer: The prices listed in this article are based on the supplied market information for October 12 and may change during the trading day. Retail rates can differ by city, jeweller, applicable taxes and additional charges. MCX futures prices are market-traded rates and may differ from physical retail prices. Readers should verify the latest rates with an authorised jeweller or market source before making a purchase.