Gold prices in India witnessed continued strength on Friday, rising by ₹1,432 to ₹1.60 lakh per 10 grams, marking a 0.9% increase from the previous session's ₹1.59 lakh, according to The Hindu BusinessLine. In just two days, 24 Karat gold has gained ₹55,100 per 100 grams, demonstrating the rapid acceleration in precious metals prices. Silver prices also joined the upward move, gaining ₹1,745 to ₹2.45 lakh per kg in the latest session, with silver recording a total jump of ₹15,000 per kilogram in just two days. On the Multi Commodity Exchange, gold futures for October 2026 delivery rose by ₹1,432 to ₹1.60,857 per 10 grams with a business turnover of 2,542 lots, while silver futures for September 2026 delivery were up ₹1,745 at ₹2.44,988 per kg. The latest surge comes after gold had witnessed one of the biggest recent gains in India on Thursday, August 20, 2026, with 24 Karat gold rising ₹43,000 to ₹15,927 per gram in a single day. In international markets, COMEX gold futures rose 0.98% to $4,561.01 per ounce during New York trading, as reported by The Hindu BusinessLine. Spot gold prices touched around $4,537 an ounce, putting the yellow metal on track for its third consecutive weekly gain globally, according to NDTV Profit. MCX gold has gained more than ₹7,100 per 10 grams, or around 4.6% in three sessions, while MCX silver has risen by more than ₹15,000 per kg, marking a gain of nearly 6.6%. On the Multi Commodity Exchange, gold futures were trading at ₹1,61,405 per 10g as of 3:55 pm, while silver futures were trading at ₹2,46,400 per kg, according to the latest data available on the exchange's website.
US Treasury Secretary Scott Bessent announced that buybacks of Treasury securities could exceed $4 billion per issue, providing significant support to precious metals markets. "It could be more than the $4 billion per issue," Bessent told CNBC on Thursday, pushing 30-year Treasuries lower and driving precious metals higher. The Treasury will at least double its buyback operations for 10-to-30-year securities, while Secretary Bessent pushed for a higher FIMA facility threshold to ease dollar access for Japan, according to Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions Ltd. and President of India Bullion and Jewellers Association Ltd. The move is expected to provide liquidity support to the long end of the bond market, pushing the 30-year US Treasury yield down from near two-decade highs to around 5.19 per cent, according to Manav Modi, Commodities Analyst at Motilal Oswal Financial Services Ltd. The US dollar has been a key driver here. The dollar index was hovering around 98.8 and headed for a weekly decline, as reported by CNBC TV18. "Since gold and silver are priced in dollars internationally, a softer greenback makes them cheaper for buyers holding other currencies, which can boost demand and lift prices," noted CNBC TV18. Prithviraj Kothari noted that "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 ahead of the Fed's July minutes." "Gold can test the $4,550-$4,600 range if pressure on the dollar persists," he said. A weaker dollar is also driving the momentum for silver, as a soft greenback usually makes the white metal less expensive for buyers in other currencies, thereby aiding demand. Wide fiscal deficits remain a top concern for investors, along with inflation worries amid the war in Iran and supply pressure from a surge in borrowing in the artificial intelligence industry.
MCX Gold prices continue to show strong bullish momentum with Gold 5 October Futures trading at ₹1,61,620 per 10 grams, representing a 1.3% increase as of 2:00 pm on August 21, 2026, according to The Hindu BusinessLine. The price action remains strong as the contract extended its uptrend and traded near ₹1,60,890, with the price placed well above the 20-EMA and 50-EMA, showing that the short-term trend remains firmly in favour of buyers. The earlier breakout zone of ₹1,55,835 is now the key support area, as long as gold sustains above this level, the structure remains positive. The ADX is strong at 42.52, indicating that the trend has strength. Silver price action remained positive with Silver 4 September Futures at ₹2,47,328 per kg, up 1.6%, as reported by The Hindu BusinessLine. The price is holding above the 20-EMA and 50-EMA, which keeps the short-term structure bullish, with the earlier resistance of ₹2,41,999 may now act as immediate support. The ADX is strong at 42.08, showing that the current uptrend has momentum. Jateen Trivedi, VP Research Analyst at LKP Securities, noted that precious metals have found support primarily due to a weaker US dollar following the liquidity infusion through US bond purchases, while gold remained resilient despite rising crude prices and continued uncertainty around the US-Iran situation. "The momentum remains positive as long as bullion sustains above key support levels, though the sharp move may invite profit booking at higher levels. MCX Gold range is seen between ₹1,57,000 and ₹1,59,500 in the near term," Trivedi said. With MCX gold currently trading around ₹1.61 lakh per 10 grams and silver at ₹2,46,400 per kg, the question now is whether these global tailwinds can keep the rally going—or trigger a fresh bout of profit-taking at elevated levels.
Ongoing uncertainty over the US-Iran conflict in the Middle East is providing additional support to precious metals markets, with the US plans to intensify economic sanctions on Iran and is asking China for its support, according to Mint. Tehran, on the other hand, has stated that 'Trump's 'economic warfare' will fail, thus escalating the tensions further, as reported by Mint. This geopolitical tension is driving investors towards safe haven assets like gold and silver, with both 24-karat and 22-karat gold rates showing marginal increases across major Indian cities. MCX gold rate on 21 August was trading 0.19% higher at ₹160,180 per 10 grams, while MCX silver futures were also trading about 0.65% higher at ₹245,990 per kg at around 9:13 am, according to Mint. The escalating tensions are expected to keep safe haven demand elevated, with gold remaining resilient despite rising crude prices and continued uncertainty around the US-Iran situation. Bessent said the United States would impose 'the toughest sanctions in history' on Iran, adding that the move could reduce the need for new major military operations. US-Iran tensions have also strengthened safe-haven demand for precious metals, while softer labour-market data has kept the debate over the Federal Reserve's next policy move alive, according to NDTV Profit. Bharti said the possibility of another rate hike could keep market volatility elevated.
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, according to IndusInd Securities. Jigar Trivedi, Senior Research Analyst at IndusInd Securities, noted that continued central-bank buying is providing an additional structural support to gold prices. 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. A weaker dollar and lower yields are supporting the broader precious-metals complex, with silver's higher-beta characteristics allowing it to outperform gold when market momentum accelerates. Bharti believes MCX gold prices could reach ₹2 lakh per 10 grams over the medium term, provided the current macroeconomic tailwinds remain supportive. With MCX gold currently trading around ₹1.61 lakh per 10 grams, a move to ₹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 ₹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.
