Gold Rates In Your City Crashed By Rs 7,600; Will Gold Prices Rise Or Fall In Festive Season? WGC Explains

Gold rates in India have crashed for the second consecutive day on September 18. The price of 100 grams and 10 grams of gold has dropped by a whopping Rs 7,600 and Rs 760 in two days, despite the US Federal Reserve cutting key fund rates by 25 basis points for the first time in 9 months. Going ahead, the festive season will play a key role in defining the movement in gold prices. However, according to the World Gold Council, elevated gold prices or any renewed surge could impact gold demand in the festive season.

Gold Rates In Your City:

In India overall, the price of 10 grams of gold prices dropped by Rs 540 in 24 carat to Rs 1,11,170 on September 18, followed by a decline of Rs 220 to Rs 1,11,710 on September 17. Meanwhile, 22 carat in 10 grams also plunged by Rs 500 to Rs 1,01,900 per 10 grams on September 18, extending losses from a Rs 200 decline to Rs 1,02,400 on September 17.

Additionally, the 100-gram gold price declined by Rs 5,400 in 24 carat to Rs 11,11,700 on September 18, extending its losses from drop of Rs 2,200 to Rs 11,17,100 on September 17. Prices were down by Rs 5,000 on Thursday after falling by Rs 2,000 on September 17 in 22 carat of 100 grams.

From September 18 to 17, gold rates have dropped by Rs 7,600 in 24 carat of 100 grams, and down by Rs 7,000 in 22 carat of 100 grams.

Check City-Wise Gold Rates On September 18:

Gold Rates In Chennai:

Gold Rates In Bengaluru:

Gold Rates In Hyderabad:

Gold Rates In Mumbai:

Gold prices is higher in Delhi, compared to above mentioned cities. 10 grams gold rates are at Rs 1,11,320 in 24 carat, followed by Rs 1,02,050 in 22 carat and at Rs 83,470 in 18 carat.

"Gold prices eased from record highs as investors reacted to the widely anticipated 25 basis point rate cut by the US Federal Reserve, leading to a classic "sell-the-news" scenario. Additionally, the Fed's outlook of fewer rate cuts in 2026 and 2027 may have prompted some profit-taking, as a slower pace of easing is generally bearish for bullion," said Darshan Desai, CEO - Aspect Bullion & Refinery.

MCX Gold Price + MCX Silver Price

MCX gold price with October 2025 policy has pulled back significantly from its record high of Rs 1,10,666 per 10 grams. On September 18, at the time of writing, gold rate was down by Rs 574 or 0.52% to trade at Rs 1,09,248 per 10 grams.

Meanwhile, MCX silver price witnessed even higher drop by Rs 1,149 or 0.9% to trade at Rs 1,25,835 per 1kg. This commodity has significantly corrected from its all-time high of Rs 1,30,450 per 1kg.

Will Gold Prices Fall Or Rise Ahead Of Festive Season?

The festive season is all set to kick off from next week with Navratri. Kavita Chacko, Research Head India at World Gold Council in her note said, "Gold demand could strengthen during the peak festive period (October - December), aided by sustained investment interest, wedding and occasions-related jewellery purchases, and a potential boost from consumption tax cuts. However, elevated prices - and any renewed surge - may curb overall demand."

According to Chacko, gold prices saw a sharp upswing in late August, with the rally accelerating through the first half of September to hit fresh all-time highs, pushing year-to-date gains to 40%.1 International gold prices climbed 4% in August and added another 6.7% in early September as bullish sentiment deepened.

"Our Gold Return Attribution Model (GRAM) attributes August's gains to a weaker US dollar, elevated geopolitical tensions, and strong inflows into global gold ETFs. The continued momentum in September was supported by positive investor positioning - evidenced by rising futures net longs and sustained ETF inflows. Lower US Treasury yields, amid growing expectations of a Fed rate cut and concerns around the Fed's independence, have provided additional tailwinds," she added.

Also, she highlighted that gold demand in India is showing signs of a pickup with the onset of the festive season, led primarily by a surge in physical investment demand for bars and coins, according to market reports and anecdotal evidence from trade channels. Investment interest is reportedly outpacing jewellery purchases, as consumers are drawn in by the renewed uptrend in prices and expectations of further increases.

Decoding further, the WGC analyst mentioned, conversations with jewellery manufacturers and retailers suggest that jewellery demand, while present, remains uneven. High-value, wedding-related purchases have begun and are holding steady, while high prices have dampened lower-ticket daily-wear and discretionary buying, prompting a shift to lower carat products. Large retailers are reporting higher footfalls, supported by aggressive marketing and promotional campaigns, along with plans for new store openings. Smaller retailers, in contrast, continue to face muted demand. Robust exchange activity, where old gold jewellery is traded in for new, has also been a key contributor to overall sales. While volumes remain lower y/y, sales value has risen aided by the higher gold prices.

Additionally, the tax cut on a range of items, including consumer goods, durables, and automobiles-takes effect from 22 September, just as the festive season enters its peak following a 16-day inauspicious period. Hence, Chacko said, "Overall, expectations for a strong festive season are building across the gold trade."