Write News

Gold Silver Price Crash: Silver Falls ₹9,000, Gold ₹4,500 in 2 Days—Crude Oil Surge, PM Modi Appeal Weigh

Posted on 2nd Sep 2026 03:37 pm by rohit kumar

 

Gold and silver prices continued to decline on September 2, with both precious metals coming under pressure amid rising crude oil prices, geopolitical tensions and growing concerns over inflation and interest rates. India Bullion and Jewellers Association (IBJA) data showed that the 999-purity gold rate fell to ₹1,51,328 per 10 grams in the September 2 morning session, while 999-purity silver declined to ₹2,28,360 per kg.

 

Gold and silver have now recorded a sharp fall over the past two sessions. Compared with the September 1 IBJA rates, gold is down ₹3,470 per 10 grams, while silver has fallen ₹7,128 per kg.

 

Gold, Silver Price Today: What Does IBJA Data Show?

 

According to IBJA's benchmark rates:

 

Gold 999: ₹1,51,328 per 10 grams on September 2

Gold 999 on September 1: ₹1,54,798 per 10 grams

Silver 999: ₹2,28,360 per kg on September 2

Silver 999 on September 1: ₹2,35,488 per kg

 

IBJA rates are benchmark bullion prices and are quoted without 3% GST and making charges.

 

The latest fall follows a sharp decline in the previous session, putting gold and silver under renewed pressure.

 

Why Are Gold and Silver Prices Falling?

 

The latest decline is being driven by several factors rather than a single trigger.

 

1. Crude Oil Prices Surge

 

Crude oil prices have risen sharply amid escalating US-Iran tensions and concerns over supply disruptions around the Strait of Hormuz.

 

Brent crude moved close to $95 a barrel on September 2 after earlier touching around $97, increasing concerns that higher energy prices could fuel inflation globally.

 

For India, higher crude prices are particularly important because the country is heavily dependent on imported oil. Rising energy costs can increase the import bill and inflationary pressure.

 

2. Higher Interest-Rate Expectations

 

Gold does not provide regular interest income. Therefore, expectations of higher interest rates can reduce its appeal compared with yield-bearing assets.

 

Reuters reported that rising oil prices have intensified inflation concerns and increased expectations that the US Federal Reserve could keep rates higher or potentially raise rates again.

 

This has added pressure on gold and other precious metals.

 

3. Stronger US Dollar

 

The US dollar has also strengthened as investors seek safety amid heightened geopolitical uncertainty.

 

A stronger dollar generally makes dollar-denominated gold more expensive for buyers using other currencies, which can weigh on international demand. Reuters reported that the dollar reached a two-week high alongside the latest decline in gold.

 

4. Middle East Geopolitical Tensions

 

Renewed US-Iran military tensions have increased uncertainty in global markets.

 

The conflict has simultaneously pushed oil prices higher and increased concerns about inflation, creating a complicated environment for precious metals.

 

PM Modi's Appeal to Avoid Non-Essential Gold Buying

 

Prime Minister Narendra Modi has also appealed to Indians to avoid purchasing gold unless it is absolutely necessary.

 

The appeal is significant for India because gold has traditionally been an important part of household savings, weddings and festivals. Any sustained moderation in physical gold demand could affect the domestic jewellery market.

 

However, PM Modi's appeal should not be treated as the sole reason for the latest fall in bullion prices. International factors such as crude oil, the US dollar, interest-rate expectations and geopolitical developments are playing a major role in the current market movement.

 

Gold and Silver: From Record Highs to Sharp Correction

 

Gold and silver have experienced significant volatility in 2026.

 

The precious-metals market has seen a dramatic rally followed by sharp corrections, making daily and weekly price movements particularly volatile.

 

Silver has been especially volatile because, apart from investment and jewellery demand, it is also heavily linked to industrial demand. Changes in global growth expectations can therefore produce larger price swings in silver than in gold.

 

Why Gold Prices Differ From One City to Another

 

The retail price of gold can vary between cities even when benchmark bullion rates are similar.

 

Four key factors include:

 

Transportation and security costs: Moving bullion between markets involves logistics, insurance and security expenses.

 

Local demand and supply: Jewellery demand varies by region and can influence local premiums.

 

Local jewellers' associations: Market participants may use local benchmark rates based on prevailing supply-demand conditions.

 

Inventory and procurement costs: Jewellers may hold gold purchased at different prices, which can influence the final selling price.

 

Therefore, the price a customer sees at a jewellery shop may not exactly match the IBJA benchmark rate.

 

3 Things to Check Before Buying Gold Jewellery

Buy BIS-Hallmarked Gold

 

Consumers should check that jewellery carries the required BIS hallmarking information and verify the purity before making a purchase.

 

Check the Day's Gold Rate

 

Compare the jeweller's quoted bullion rate with reliable benchmark rates before purchasing. Also confirm whether the quoted price is for 24K, 22K or 18K gold.

 

Understand Making Charges

 

Making charges can significantly increase the final jewellery bill. Ask the jeweller for a clear breakup covering the gold value, making charges, GST and any other applicable costs.

1 0 Tweet