The price of gold edged higher on September 17 as international bullion markets posted modest gains, setting the tone for domestic prices across India. Global gold prices rose to a three-week high, driven by an easing of tensions in the Middle East and expectations that the US Federal Reserve would begin cutting interest rates later this year. These factors boosted investor appetite for the precious metal, which investors view as a safe haven during uncertain economic times.
At the domestic level, the upward trend carried through to major Indian cities. In Chennai, the price of 22-carat gold, the standard for jewellery purchases, climbed ahead of the peak wedding season and the upcoming religious festival of Diwali, which historically fuels strong buying. Mumbai saw similar movements, with wholesale traders reporting steady demand from local jewellers restocking inventories. Delhi, Kolkata, and other metropolitan markets followed suit, with each city recording small gains over the previous day's closing prices.
The 24-carat gold rate, used mainly for coins, bars, and digital investment products, also rose in tandem across all major markets. In contrast, 18-carat gold, primarily used in making charges and mixed-alloy jewellery, ticked up by a fraction, reflecting the differential premium applied by refiners and dealers.
Industry observers noted that while the current month has seen a sharp rally in gold prices, recent weeks have brought some correction after earlier peaks. Traders advised consumers to monitor the pace of the dollar index and crude oil prices, both of which remain influential on domestic gold valuations. Jewellers in southern and western states reported healthy footfalls on Friday, with families planning ahead purchases for weddings taking advantage of the day's trading session before weekend closures.
