- Gold and silver prices rose sharply, supported by a weaker US dollar and Treasury yield volatility
- Spot gold neared $4,537 an ounce, marking a third straight weekly gain globally
- MCX gold crossed Rs 1.61 lakh per 10 grams, while silver surged above Rs 2.47 lakh per kg
Gold and silver prices have extended their sharp upward momentum, with both precious metals posting strong gains over the past three sessions, supported by a weaker US dollar and volatility in US Treasury yields.
In the international market, spot gold prices touched around $4,537 an ounce, putting the yellow metal on track for its third consecutive weekly gain. Silver has also strengthened, reflecting renewed buying interest across the precious-metals complex.
In the domestic market, MCX gold prices jumped more than 1.3% to cross the Rs 1.61 lakh per 10 grams mark, while MCX silver prices surged 1.8% to move above Rs 2.47 lakh per kg.
MCX gold has gained more than Rs 7,100 per 10 grams, or around 4.6% in three sessions. MCX silver, meanwhile, has risen by more than Rs 15,000 per kg, marking a gain of nearly 6.6%.
Why Are Gold, Silver Prices Rising?
The rally in gold and silver prices has been driven by a combination of factors, including a weaker US dollar, changing US bond yields, expectations around the US Federal Reserve's interest-rate trajectory, geopolitical tensions and growing concerns over the US fiscal position.
“The US debt has crossed $40 trillion, while the Treasury has announced larger long-duration bond buybacks of at least $4 billion per operation, which initially pushed yields and the dollar lower and supported precious metals,” said Vandana Bharti, Head of Commodity Research at SMC Global Securities.
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US-Iran tensions have also strengthened safe-haven demand for precious metals. At the same time, softer labour-market data has kept the debate over the Federal Reserve's next policy move alive. Bharti said the possibility of another rate hike could keep market volatility elevated.
Jigar Trivedi, Senior Research Analyst at IndusInd Securities, echoed the view, noting that continued central-bank buying is providing an additional structural support to gold prices.
Central banks purchased nearly 289 tonnes of gold in the second quarter of 2026, up 62% from a year earlier, highlighting the strength of underlying demand for the precious metal, Trivedi said.
Aamir Makda, Commodity & Currency Analyst at Choice Broking highlighted that the World Gold Council recorded 288.9 tonnes of net central-bank purchases in Q2 2026, up 62% from 177.9 tonnes a year earlier, while the People's Bank of China added 20t in July, its largest purchase since late 2023 and the 21st consecutive monthly increase.
“In China, gold-stock ETFs rose more than 6%, net imports surged 138% year-on-year through H1 2026, and gold consumption increased 1.23%, with investment demand strengthening. Meanwhile, the dollar's share of global foreign-exchange reserves declined from 72% in 2000 to around 58% in 2025, while gold's share rose to 24%, above US Treasury bonds at 23%,” Makda said.
Overall, he added that the combination of central-bank accumulation, investment inflows, reserve diversification, monetary-policy uncertainty and silver's structural deficit keeps the precious-metals outlook constructive in near term.
Silver Outperforms Gold
Silver has displayed even stronger momentum compared with gold, benefiting from both investment demand and its industrial applications.
“The market is expected to remain in deficit for a sixth consecutive year, leaving prices sensitive to any increase in investment or industrial demand. While solar manufacturers are using less silver through substitution and efficiency gains, demand from data centres, artificial intelligence, automobiles and other technologies remains supportive,” Trivedi said.
Bharti said a weaker dollar and lower yields are supporting the broader precious-metals complex. Silver's higher-beta characteristics, meanwhile, allow it to outperform gold when market momentum accelerates.
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Can Gold Prices Reach Rs 2 Lakh?
Bharti believes MCX gold prices could reach Rs 2 lakh per 10 grams over the medium term, provided the current macroeconomic tailwinds remain supportive.
With MCX gold currently trading around Rs 1.60 lakh per 10 grams, a move to Rs 2 lakh would imply an additional gain of roughly 25%.
“I would see it as a possibility, not a straight-line target. My key takeaway is that this is no longer just a safe-haven rally. Dollar + yields + Fed expectations + $40 trillion US debt + Treasury buybacks + Iran tensions are creating a powerful macro backdrop for gold and silver,” Bharti said.
Trivedi also believes a Rs 2 lakh gold price is achievable during a strong bullish cycle, although he cautioned that the level should be viewed as a medium-term possibility rather than an immediate certainty.
“The outlook for both metals remains constructive, but investors should expect sharp corrections along the way. Gold's path to Rs 2 lakh will depend on global bullion prices, the rupee, US interest rates and central-bank buying, while silver is likely to remain the more volatile play because of its industrial exposure,” Trivedi said.
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