MCX gold prices have surged 13.3% since July 31, 2026, with the rally gathering pace in the second half of August as weaker US dollar, changing Federal Reserve rate expectations, and renewed safe-haven demand lifted bullion prices. According to Multi Commodity Exchange data, gold futures for the October 5 expiry rose from ₹1,43,376 per 10 grams on July 31 to ₹1,62,438 per 10 grams on August 21, representing a gain of ₹19,062. The contract has crossed ₹1.50 lakh on August 7 and moved above ₹1.60 lakh on August 20 before closing at a record-high level of ₹1,62,438 on August 21. On Monday, August 24, gold futures rose by ₹1,283 to ₹1.63 lakh per 10 grams, with the precious metal extending its upward momentum as fresh speculative positions were created on firm spot demand. On the Multi Commodity Exchange, the yellow metal contracts for October delivery traded higher by ₹1,283, or 0.79 per cent, at ₹1,63,721 per 10 grams in a business turnover of 3,424 lots. This dramatic surge reflects the precious metal's strong momentum from last week's 5% global rally, driven by temporary pullbacks in Treasury yields and dollar weakness amid rising crude oil prices and West Asia war uncertainties.
Gold rates in India continue to rise on August 24, 2026, with 24 carat gold price nearing ₹1.64 lakh per 10 grams mark, representing a remarkable 14% surge in August overall across all purities. According to Goodreturns, 22 carat gold has breached above ₹15,000 mark in 1 gram, while 18 carat gold is above ₹12,300 per 1 gram and 24-carat gold is already above ₹16,400 levels in 1 gram. In the month of August overall, 24-carat, 22 carat and 18 carat gold prices are up nearly 14%, demonstrating sustained momentum throughout the month. At Tanishq, 22-carat gold prices are up by ₹80 in 1 gram, with 100 grams gold prices higher by a whopping ₹8,000, while 24 carat gold prices are at ₹16,445 per 1 gram and ₹1,64,450 per 10 grams. IBJA gold rates show 999 purity at ₹16,260 per 1 gram, 995 purity at ₹16,195 per 1 gram, and 916 purity at ₹14,894 per 1 gram, with Malabar, Kalyan Jewellers, and Joyalukkas maintaining consistent pricing across major states.
Gold has witnessed a strong breakout and is trading near fresh highs around ₹1.63 lakh, with the move above the previous resistance zone of ₹157,500–158,000 confirming renewed bullish momentum. According to Motilal Oswal Financial Services, previous levels are no longer valid because the market has already broken above the upper Bollinger Band. The sharp recovery from July lows has reversed the earlier corrective trend, with the market now entering a price-discovery phase where momentum and sentiment are likely to drive near-term direction. A sustained move above ₹1.63 lakh could open the door towards ₹1.66,000–168,000 during the week, while on the downside, any correction towards ₹1.58,000–160,000 is likely to attract buying interest. The overall structure indicates strength with higher highs and higher lows continuing to develop on the daily chart. Globally, gold futures increased 0.99 per cent to $4,648.78 per ounce in New York, supporting the domestic rally and reinforcing the precious metal's bullish momentum across international markets.
The US Dollar Index fell to a three-month low earlier in August, with the dollar weakening significantly as weaker US economic data reduced expectations of an immediate Federal Reserve rate hike. Since gold is priced in dollars, a softer greenback makes the metal relatively cheaper for buyers holding other currencies, supporting demand. The US Treasury's August 19 announcement that it would double buybacks of longer-dated Treasury debt provided another major trigger for the rally, pushing yields lower and further weakening the dollar. Gold prices subsequently jumped more than 3% that day, giving the domestic MCX contract another significant boost. The 30-year Treasury yield reached its highest level since 2007, with traders citing concerns over the deteriorating fiscal outlook, heavy debt issuance, geopolitical risks stemming from the war with Iran, and uncertainty over the Federal Reserve's policy outlook. As per Goodreturns, gold and silver jumped over 3% to a two-and-a-half-month high after the US Treasury's surprise liquidity support announcement pulled down bond yields and the dollar.
Investment demand strengthened considerably during the week, with gold-backed ETFs recording their largest daily inflow since September 2025 and extending a five-week streak of net inflows, reflecting renewed institutional interest in the metal. Gold-backed ETFs recorded their largest daily inflow since September 2025, with the move pushed by rising concerns over the long-term health of US public finances and growing expectations that policymakers may increasingly intervene in financial markets to manage borrowing costs. Central banks also continued to provide an important source of support through ongoing reserve diversification, particularly amid elevated geopolitical risks and persistent inflation concerns. Markets also reacted to the growing US debt burden, which has now exceeded $40 trillion, raising concerns over fiscal sustainability and the potential erosion of confidence in fiat currencies. Fresh positions built up by participants led to a rise in precious metal prices, with analysts noting that speculative activity has intensified as the rally gains momentum. According to Enrich Money's Ponmudi R, gold continues to draw support from renewed concerns over U.S. fiscal sustainability after federal debt surpassed $40 trillion, with the Treasury's move to expand purchases of longer-dated government debt initially pushing yields lower and weakening the dollar.
