Gold, silver rise on 1 October; MCX gold at Rs 146,950 per 10 grams

Gold prices had been softening for the past few days but picked up again on 1 October. At 9 am, gold on MCX was up Rs 833 at Rs 146,950 per 10 grams. Silver also rose Rs 1,837 on MCX to Rs 225,543.

Prices of both metals have also risen in the international market. On Comex, gold gained 0.29 per cent to $4,199 an ounce. Silver rose 1.39 per cent to $61 an ounce.

In the bullion market, 24-carat gold is priced at about Rs 14,900 per gram in major cities. In Chennai, Mumbai, Kolkata, Bengaluru, Hyderabad, Kerala and Pune it is Rs 14,958. In Delhi it is slightly lower at Rs 14,893. In Vadodara and Ahmedabad the price is Rs 14,963.

The 22-carat gold is currently at Rs 13,711 per gram in most places. In Delhi it is Rs 13,726, and in Vadodara and Ahmedabad Rs 13,716. The price of 18-carat gold is about Rs 11,200. In Chennai it is Rs 11,481, while in other cities it ranges between Rs 11,219 and Rs 11,234.

For a 5-gram ring in 22-carat gold, at an estimated Rs 13,650 per gram on 1 October 2026, the cost of the gold alone would be about Rs 68,250. Making charges and GST are extra. Depending on the making charges, the actual price of the ring could be about Rs 75,000 to Rs 85,000.

One important reason for the rise is the US inflation data. It was better than expected, which lowered the chance of the Federal Reserve raising interest rates immediately. However, rising energy prices have weakened this support for gold. The Federal Reserve treats the PCE (personal consumption expenditures) index as important for monitoring inflation.

The Fed's target is to keep inflation at 2 per cent. This month the Fed raised its interest rate from 3.75 per cent to 4 per cent and signalled further increases. In a high interest rate environment gold can lose its shine, because interest-bearing investments become more attractive.

Oil prices also remain elevated. Talks between the United States and Iran to end the war are stalled, which has raised concern about oil staying high for a long time. If oil stays expensive, inflation could rise and interest rates could stay high.

Silver has swung more than gold during the recent fall. The dollar, US bond yields and interest rate expectations also affect silver. Because silver is used in industry, industrial demand also influences its price.