Gold Surges ₹158 Per Gram on September 18 as Dollar Weakens

Gold prices across India surged on September 18, with 24-karat gold climbing ₹158 per gram to ₹15,453 per gram in most major cities. The rally reflects a weaker US dollar and declining Treasury yields after recent volatility tied to the Federal Reserve’s rate decision. Global spot gold crossed $4,346 per ounce, while silver gained nearly 1% to trade near $66 per ounce, supported by easing inflation concerns and lower crude oil prices.

Why gold rallied across most of India

A softer US dollar and falling Treasury yields after the Fed’s rate hike decision pushed gold higher on September 18. Vedika Narvekar, Research Analyst at Anand Rathi Share and Stock Brokers, said cooling yields and declining oil prices eased inflation concerns. Gold ETF inflows continued despite recent volatility, supporting the longer-term investment case for the metal.

On the domestic front, MCX October gold futures traded at ₹1.53 lakh per 10 grams, up 0.66% for the day. The rupee stood around ₹95.94 against the US dollar, a key factor since India imports most of its gold and silver. A weaker rupee can cushion the impact of falling international bullion prices.

Chennai diverges sharply from national trend

While most Indian cities posted uniform gains, Chennai moved in the opposite direction. The city’s 24-karat gold fell to ₹1,52,830 per 10 grams, down roughly ₹620 from Thursday, marking a sharp divergence from the nationwide rally. Local bullion associations in Chennai set their own city-level rates independent of the national average, and dealers said the decline likely reflects a local correction after the city carried an unusually wide premium in recent sessions.

Mumbai, Delhi, Kolkata, Bangalore, Hyderabad, Kerala, Pune, Vadodara and Ahmedabad all posted the broader nationwide rise. Most cities saw 24-karat gold at ₹1,54,420 per 10 grams and 22-karat gold at ₹1,41,550 per 10 grams.

Silver outpaces gold with stronger rebound

Silver recorded gains of nearly 1% to trade near $66 per ounce globally, outpacing gold’s more modest move. Gaurav Garg, Head of Research at Lemonn, said both metals were recovering sharply after recent sell-offs as the dollar and Treasury yields eased, with silver seeing a stronger rebound. Silver’s faster movement reflects its dual nature: besides investment demand, it carries significant industrial use, making it sensitive to expectations around economic activity alongside monetary policy and currency swings.

Domestically, MCX December silver traded at ₹2.41 lakh per kg, higher by 1.20%. Silver in India is priced at ₹244.90 per gram, or ₹2,44,900 per kilogram on September 18.

Fed rate path remains a headwind for gold

While the recent rally is welcome, the outlook for gold remains sensitive to the Federal Reserve’s interest-rate path. The Fed’s guidance for at least one more rate hike this year remains a headwind for precious metals. Currency movements, crude oil prices, and geopolitical developments will continue to dictate near-term direction. Investors watching gold as an inflation hedge should monitor both global yields and the rupee’s movement against the dollar.

Final Thoughts

Gold’s September 18 rally reflects a temporary reprieve from Fed-driven volatility, but the path forward depends on whether Treasury yields stabilize and the rupee holds. Investors should treat this as a bounce, not a trend reversal, until the Fed signals a pause in rate hikes.

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