Gold prices cool off; rates drop by nearly ₹2,000—check today's rate for 10 grams

Gold prices saw a slight dip yesterday and have fallen again today. On Wednesday, gold prices dropped by ₹600. Today, there is a decline of over ₹1,700.

The rally in gold prices—which had continued for four consecutive days—has now come to a halt. In the Delhi bullion market, gold prices fell by ₹600 on Wednesday, August 27, settling at ₹1,66,500 per 10 grams. In yesterday's session, the price of 99.9% pure gold had closed at ₹1,67,100 per 10 grams. However, according to the All India Bullion Association, silver saw a marginal rise; it increased by ₹500 from Tuesday's closing price of ₹2.5 lakh per kilogram to reach ₹2,50,500 per kilogram (inclusive of all taxes).

What is the price today?

A significant drop in gold prices is being observed today as well. According to an *Eastern Herald* report, the base price of 24-carat gold is ₹16,200 per gram, and the price of 22-carat gold is ₹14,850 per gram—down by ₹174 and ₹150, respectively, compared to Wednesday. Yesterday's base price was approximately ₹1,63,740, whereas today it stands at ₹1,62,000. This represents a direct difference of ₹1,740 per 10 grams. Note that "base price" refers to the original cost of an item before any taxes, duties, or additional charges are applied.

This decline in gold prices is being attributed to the US Personal Consumption Expenditure (PCE) index standing at 3.7% in July—a figure significantly higher than the US Federal Reserve's (Fed) target of 2%. Consequently, the spot gold price fell from a three-month high to $4,633 per ounce.

Why does this directly impact gold prices?

Gold prices tend to fall whenever the inflation rate (PCE index) in the US remains higher than expected or stays robust. The PCE index serves as a key inflation indicator for the Federal Reserve. Its persistence at 3.7% has sparked market concerns that the US Federal Reserve might hike interest rates during its September meeting. The prospect of rising interest rates prompts investors to shift funds from gold into bonds and the US dollar in pursuit of higher returns.

Following these strong inflation figures, the US Dollar Index saw an uptick. Since gold is traded in dollars in the international market, a stronger dollar makes the metal more expensive for holders of other currencies (such as the Indian Rupee), thereby dampening global demand and driving prices down.

Gold prices in your city today

Gold prices in India vary across cities today. In Delhi, the price of 24-carat gold stands at ₹1,62,000 per 10 grams, while 22-carat gold is priced at ₹1,48,500 per 10 grams. Similarly, in Mumbai, the prices for 24-carat and 22-carat gold are ₹1,61,900 and ₹1,48,400 per 10 grams, respectively. Prices are identical in Kolkata and Lucknow, where 24-carat gold is priced at ₹1,62,100 and 22-carat gold at ₹1,48,600.

Silver prices today

Today, August 27, the average price of silver in India ranges between approximately ₹2,59,900 and ₹2,65,000 per kilogram. Retail prices have seen an upward trend driven by gains observed during the early morning trading sessions in global markets and on the domestic commodity exchange (MCX). Today, the price of 1 gram of silver ranges from ₹260 to ₹265, 10 grams from ₹2,600 to ₹2,650, and 1 kilogram remains between ₹2,59,900 and ₹2,65,000.