Gold, Silver Prices Drop: Gold Slips ₹40,000, Silver Down ₹1.83 Lakh From All-Time Highs

September 07, 2026 — Gold and silver buyers witnessed a significant price correction as rates fell noticeably across spot markets and futures exchanges. Over the past week alone, gold prices dropped by approximately ₹4,700 per 10 grams, while silver recorded a steep decline of around ₹8,400 per kilogram.

Market Performance Overview

When measured against record peak levels, both precious metals have seen a sharp pullback:

Silver Correction: After hitting an all-time high of ₹4,20,048 per kg on January 29, 2026, fine silver has plunged by nearly ₹1.83 lakh per kg.

Gold Correction: Gold has cooled down by roughly ₹40,700 per 10 grams from its historical peak of ₹1.93 lakh per 10 grams.

During early trade on the Multi Commodity Exchange (MCX) on Monday morning, the October gold futures contract fell ₹503 to ₹1,52,264 per 10 grams, while silver dropped ₹771 to ₹2,36,887 per kg. However, afternoon sessions saw a brief recovery on the exchange, with MCX gold rebounding past ₹1,53,150 per 10 grams.

Major Factors Driving the Price Decline

Market experts attribute the recent weakness in bullion prices to two primary global macroeconomic factors:

Strong US Economic Data & Rate Hike Fears: Robust US labor data has sparked market expectations that the Federal Reserve may hike interest rates in upcoming policy meetings. Rising interest rates typically diminish the appeal of non-yielding assets like gold and silver.

Firm US Dollar Index: The US Dollar Index remained elevated around the 99 mark. A stronger dollar makes dollar-denominated commodities more expensive for holders of other currencies, putting downward pressure on international demand.

Falling Imports in India: On the domestic front, Prime Minister Narendra Modi’s appeal to curb unnecessary gold purchases, alongside a 15% import duty hike, led to a substantial drop in Indian gold imports—declining by nearly 30% in August.

City-Wise Retail Gold Rates Today (per 10g)

Note: Physical retail jewelry prices exclude 3% GST, local taxes, and jeweler making charges.