It has been a rollercoaster week for gold and silver prices in India and around the world, with rates swinging sharply as investors and traders braced for the latest decision from the US Federal Reserve. On September 17, 2025, gold prices in India saw both record highs and sudden declines, reflecting global uncertainty and the immense influence of American monetary policy on precious metals markets.
According to GoodReturns, the price of 24-carat gold in early trade on Wednesday edged up by ₹10, with ten grams of the yellow metal trading at ₹1,11,940. Silver prices also ticked higher, rising ₹100 per kilogram to ₹1,34,100. These numbers were echoed in major cities: in Mumbai and Kolkata, ten grams of 24-carat gold stood at ₹1,11,940, while in Chennai, it reached ₹1,12,160, and in Delhi, ₹1,12,090. For 22-carat gold, the price was ₹1,02,610 per ten grams in Mumbai, Kolkata, Bengaluru, and Hyderabad, and slightly higher in Chennai and Delhi. Silver, meanwhile, was pegged at ₹1,34,100 per kilogram in Delhi, Kolkata, and Mumbai, but soared to ₹1,44,100 in Chennai.
Yet, as the day progressed, the market narrative shifted. As reported by Goodreturns.in, gold prices underwent a notable decline, easing the pressure on retail buyers who had been grappling with the relentless rise in the precious metal's value. On Wednesday, 24-carat gold rates in India slipped by ₹220 per ten grams to ₹1,11,710, and 22-carat gold fell by ₹200 to ₹1,02,400. Even 18-carat gold saw a decrease of ₹170 to ₹83,780 per ten grams. The price for bulkier quantities mirrored this downward trend—100 grams of 24-carat gold now cost ₹1,117,100, down by ₹2,200, and 100 grams of 22-carat gold stood at ₹1,024,000, down by ₹2,000.
Silver, too, experienced a sharp correction, dropping ₹2,000 per kilogram to ₹1,32,000. In city-specific terms, silver in Mumbai, Kolkata, and Delhi was priced at ₹1,34,100 per kilogram, while in Chennai, it was notably higher at ₹1,44,100, according to India.com. For 100 grams, the rate was ₹13,200.
These rapid fluctuations are not occurring in isolation. The global gold market has been on edge, with spot gold hovering near all-time highs. As per Reuters, spot gold was at $3,690.09 per ounce as of 01:15 GMT, after hitting a record $3,702.95 the previous day. However, by 05:15 GMT, spot gold had eased to $3,683.19 per ounce, and U.S. gold futures for December delivery slipped to $3,719.50. Spot silver also dipped 1.4% to $41.96 per ounce, while platinum and palladium saw modest gains.
What’s driving this volatility? All eyes are on the US Federal Reserve’s interest rate decision, expected later in the day. The anticipation of a rate cut—widely forecast to be 25 basis points—has been a major factor in buoying gold prices and weakening the US dollar. As the dollar index rose by over 0.10%, gold became costlier in other currencies, adding another layer of complexity for international buyers and investors.
Commodity analysts are closely watching the situation. According to an ICICI Commodity report cited by Goodreturns.in, "Spot Gold is likely to hold its gains and trade higher ahead of today’s FOMC meeting. Growing bets of multiple rate cuts in the coming months will boost gold’s demand. Signs of slowdown in the US labour market and steady US inflation numbers have strengthened the chances of more than a 50 bps rate cut this year." Nirmal Bang Securities, meanwhile, forecasted that "Gold prices are expected to correct. Traders can sell at 110400 with a stop loss of 110700 for the target at 110000-109500. One can also buy from 109500, maintaining a stop loss of 109200."
On the Multi Commodity Exchange (MCX), gold October futures reflected this uncertainty, trading down 0.41% at ₹1,09,705 per ten grams around 10:00 am, and silver December futures dropping 1.18% to ₹1,27,304 per kilogram. Similar figures were reported earlier in the morning, with MCX gold futures at ₹1,09,884 and silver at ₹1,27,424. These declines were widely attributed to profit booking ahead of the Fed’s announcement, as well as the impact of a strengthening dollar.
Market experts are urging caution. Manoj Kumar Jain of Prithvifinmart Commodity Research explained, "We suggest avoiding fresh positions in gold and silver ahead of the FOMC meeting outcomes, and traders can also book profits once in the existing long positions. For long-term investors no need to worry as long-term bullish trend is intact for both precious metals." Jain also noted that gold has support at $3,700-$3,674 and resistance at $3,740-$3,764 per troy ounce, and that MCX gold support levels are ₹1,09,720-1,09,300, with resistance at ₹1,10,666-1,11,000.
Rahul Kalantri, VP of commodities at Mehta Equities, added that "gold has support at $3,651-3,630 and resistance at $3,700-3,720. Silver has support at $41.75-41.50 and resistance at $42.65-43.00. In INR, gold has support at ₹1,09,540-1,09,240 while resistance is at ₹1,10,550-1,11,000. Silver has support at ₹1,27,550-1,26,750 while resistance at ₹1,29,450, 1,30,150."
Despite the short-term turbulence, the broader trend for gold in 2025 has been strikingly bullish. Prices have surged more than 40% this year, driven by robust central bank demand, safe-haven inflows amid geopolitical uncertainty, and a shift away from the weakening US dollar. The world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, saw its holdings rise 0.32% to 979.95 metric tons on September 16, up from 976.80 tons the previous day, as reported by Reuters.
In India, gold remains a vital investment and cultural asset, especially with the festive and wedding seasons approaching. Despite the recent dip, many analysts expect demand to rebound, potentially pushing prices higher again. As India.com points out, gold is still widely regarded as a reliable hedge against inflation and a preferred choice for those seeking financial stability.
Ultimately, while the immediate future of gold and silver prices may hinge on the Federal Reserve’s next move, the underlying fundamentals—central bank buying, investor demand, and the enduring appeal of precious metals—suggest that volatility may be the new normal. For now, both cautious traders and long-term investors are watching the markets closely, ready to adapt as the global economic story unfolds.
