Gold and silver prices fell in early domestic trading on Thursday, as preliminary talks between Washington and Tehran curbed safe-haven interest in precious metals. The pullback followed reports that Iranian Foreign Minister Abbas Araqchi met indirectly with U.S. envoys Steve Witkoff and Jared Kushner via mediators on Tuesday, their first contact since a July ceasefire collapsed.
MCX Futures and Physical Rates Both Slip
The weakness was visible across both futures contracts and physical retail bullion tracking:
On the Multi Commodity Exchange (MCX), gold futures for October 5 delivery dipped nearly 0.12% to ₹1,51,071 per 10 grams at approximately 09:05 AM IST
Silver contracts for December 4 delivery slid 0.53% to ₹2,34,650 per kg
In physical retail bullion, 24-Karat Gold was quoted at ₹1,51,101 per 10 grams, down ₹69 (-0.11%)
Silver (999 Fine) stood at ₹2,34,821 per kg, down ₹1,165 (-0.49%)
Earlier in the week, 24-carat gold had stood at ₹1,51,840 per 10 grams, with 22-carat gold at ₹1,39,187 per 10 grams
What This Means for Gold Loan Borrowers
The price pullback carries practical implications for those holding gold loans, with two key considerations flagged:
Review LTV margins: Evaluate pledged jewellery value at current spot rates to maintain a safety cushion above the mandatory 75% LTV regulatory threshold, mitigating auction risk during sharp gold pullbacks
Compare the fine print: Look past headline interest rates to evaluate reset frequencies, processing charges, prepayment penalties, and default auction clauses across competing bank and NBFC gold loan offerings