Gold prices dropped on September 18, despite US Federal Reserve slashing its policy repo rate by 25 basis points. This comes as investors may have resorted to profit booking at elevated levels.
Gold's October contracts on the Multi Commodity Exchange of India (MCX) opened at Rs 1,09,180 per 10 grams today. The yellow metal had recently rallied to fresh all time highs. Let's check the latest prices of 10 grams of 22 carat and 24 carat gold in major cities of the country on September 18.
City-wise gold rates on September 18:
| City | Price of 24k gold | Price of 22k gold |
| Delhi | Rs 1,11,320/10g | Rs 1,02,050/10g |
| Mumbai | Rs 1,11,170/10g | Rs 1,01,900/10g |
| Chennai | Rs 1,11,490/10g | Rs 1,02,200/10g |
| Kolkata | Rs 1,11,170/10g | Rs 1,01,900/10g |
| Bengaluru | Rs 1,11,170/10g | Rs 1,01,900/10g |
| Jaipur | Rs 1,11,320/10g | Rs 1,02,050/10g |
| Lucknow | Rs 1,11,320/10g | Rs 1,02,050/10g |
| Hyderabad | Rs 1,11,170/10g | Rs 1,01,900/10g |
| Ahmedabad | Rs 1,11,220/10g | Rs 1,01,950/10g |
Why are gold prices falling?
"The Federal Reserve delivered its first 25 bps rate cut of 2025, in line with expectations. However, the policy stance for 2026 was less dovish, with markets now pricing in only one potential cut next year. This shift in outlook weighed on bullion, which had rallied strongly in recent weeks on aggressive rate cut bets and heightened geopolitical tensions," said Axis Securities.
"After a sharp rally, some profit booking is warranted," said Motilal Oswal Financial Services. The domestic brokerage advised a staggered approach of investment with a possibility of 5-7% dips from current level for targets of Rs 1,13,000 and Rs 1,20,000 on domestic front.
How has gold performed this year?
"Gold kicked started the year with impressive momentum, delivering over 30% returns YTD. Geopolitical tensions, tariff wars, and investment demand are a few factors driving gold’s bull run. Risk premium eased as US-China trade tiff gets a 90-day breather, and ceasefire talks parallelly continue. President Trump’s pressure on the Fed hasn’t changed rates so far, but there are increasing chances for a 25bps rate cut in Sept. policy meeting," the brokerage added.
Should you buy gold?
The brokerage advised investors to buy gold on dips, with a medium to long term perspective. Long term support is near Rs 99,500-1,00,000.
Also read: Is gold’s current run speculative?
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
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