With geopolitical tensions escalating internationally, investors are closely monitoring the next developments. Gold and silver prices could remain volatile as the situation unfolds.
According to a CNN report published on Thursday, the US military has prepared options for renewed strikes against Iran. These reportedly include the possible use of one of America's largest non-nuclear bombs. Meanwhile, Iran has vowed to continue the conflict while pursuing its demands.
Rising tensions between the two countries have added to uncertainty in global markets. Investors often monitor gold prices during such periods because the metal is widely regarded as a safe-haven investment. However, gold and silver prices are influenced not only by geopolitical developments but also by movements in the US dollar, interest rates and demand in international markets.
Gold Prices in Delhi, Mumbai and Other Major Cities
Gold prices varied across major Indian cities on October 16. The following rates represent the prices of 24-carat and 22-carat gold per 10 grams.
In New Delhi, 24-carat gold was priced at Rs 1,47,450, while 22-carat gold stood at Rs 1,35,163. In Mumbai, 24-carat gold was quoted at Rs 1,47,590 and 22-carat gold at Rs 1,35,291.
Bengaluru recorded a 24-carat gold price of Rs 1,47,710 and a 22-carat rate of Rs 1,35,401. In Kolkata, 24-carat gold was priced at Rs 1,47,400, while 22-carat gold stood at Rs 1,35,117.
In Hyderabad, 24-carat gold was quoted at Rs 1,47,830 and 22-carat gold at Rs 1,35,511. Chennai recorded the highest 24-carat gold price among the listed cities at Rs 1,48,020, while its 22-carat gold rate stood at Rs 1,35,685.
According to these rates, Chennai had the highest price for 24-carat gold among the cities listed, while Kolkata recorded the lowest.
These are city-wise indicative rates. The final price paid for jewellery may vary depending on the jeweller's rates, making charges and applicable taxes.
Silver Prices Across Major Indian Cities
Silver prices also registered gains, with rates for silver of 999 purity varying across cities. On October 16, silver was priced at Rs 2,11,620 per kilogram in New Delhi and Rs 2,11,650 per kilogram in Mumbai.
In Bengaluru, the rate stood at Rs 2,11,820 per kilogram, while Kolkata recorded Rs 2,11,370 per kilogram. Silver was priced at Rs 2,11,990 per kilogram in Hyderabad and Rs 2,12,270 per kilogram in Chennai.
Among the listed cities, Chennai recorded the highest silver price, while Kolkata had the lowest. Buyers are advised to confirm the latest rates with their local bullion markets before making a purchase.
Understanding Gold Purity Before Buying Jewellery
Understanding gold purity is essential when purchasing gold. 24-carat gold is considered the purest form, but it is relatively soft and is therefore generally not used to make jewellery.
By contrast, 22-carat gold contains other metals, making it more durable and suitable for jewellery manufacturing. As a result, the purity requirements for investment gold may differ from those of gold used to make ornaments.
Consumers should check the hallmark and verify the purity of gold before purchasing jewellery.
What Could Happen to Gold and Silver Prices Next?
In the coming days, gold and silver prices are likely to remain sensitive to developments in US-Iran relations, movements in the dollar, expectations surrounding interest rates and global demand.
An escalation in geopolitical tensions could support demand for precious metals as safe-haven investments. However, changes in international markets could also lead to price declines.
For now, both metals recorded gains in the futures market on October 16. However, a single day's increase does not guarantee that prices will continue to rise. Investors and buyers will be watching geopolitical developments and broader market movements to assess the direction of precious metal prices.
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