Gold Prices Cross ₹1,60,000 Mark Amid Weak Dollar and Global Uncertainty

Gold prices continued their upward trend, crossing the ₹1,60,000 per 10-gram mark in domestic markets as the US dollar weakened against key currencies and US treasury yields remained volatile. According to data from the India Bullion and Jewellers Association of India, gold prices gained ₹3,540 per 10 grams to hit a high of ₹1,60,620, compared to the previous close of ₹1,57,080.

Silver prices mirrored this movement, rallying to ₹2,46,630 per kg from the previous close of ₹2,37,766. On the Multi Commodity Exchange (MCX), gold prices jumped over 1.3 per cent to cross ₹1.61 lakh per 10 grams, while MCX silver surged 1.8 per cent to move above ₹2,47,630 per kg. Over a three-session span, MCX gold gained over ₹7,100 per 10 grams—around 5 per cent—while MCX silver rose by more than ₹15,000 per kg, marking a gain of nearly 7 per cent.

Internationally, gold surged one per cent to $4,620 an ounce on Comex, reaching its highest level since May, when prices hovered near $4,659 per ounce. Analysts noted that the broader rally across precious metals was driven by a combination of a weak US dollar, changing US bond yields, geopolitical tensions, and growing concerns over the US fiscal position.

US federal debt has crossed $40 trillion, and the US Treasury announced larger long-duration bond buybacks of at least $4 billion per operation. These moves initially pushed yields and the dollar lower, providing support to precious metals. Additionally, simmering US-Iran tensions have strengthened safe-haven demand. Data shows that central banks purchased nearly 289 tonnes of gold in the second quarter of 2026, marking a 62 per cent increase from a year earlier and underlying the strong global demand.

Manav Modi, Commodities Analyst at Motilal Oswal Financial Services, stated that gold prices traded near their highest levels in over two and a half months as investors balanced support from lower bond yields against renewed concerns over inflation and rising fiscal risks. However, Modi noted that relief proved temporary, with the 30-year Treasury yield rebounding as concerns resurfaced over the sustainability of US government finances following the debt milestone.

On the domestic front, Kavita Chacko, Research Head for India at the World Gold Council, noted that domestic gold prices remain below import parity, indicating adequate local supply availability. Market feedback suggests that an increase in the exchange of old gold for new jewellery has boosted market supply and kept prices at a discount to landed cost. While discounts narrowed from about $100 an ounce in mid-May to about $45 an ounce in mid-August, they remained above July’s average of $34 an ounce.

"The sharp rally in precious metals highlights how macroeconomic volatility, currency fluctuations, and geopolitical tensions directly influence market sentiment. For businesses and entrepreneurs operating in retail and jewellery sectors, managing supply costs and understanding consumer purchasing trends amid fluctuating commodity prices becomes critical. Such global economic shifts remind us of the importance of maintaining resilient financial planning during periods of heightened fiscal uncertainty." — Dr. Shishir Gupta, Founder & CEO, StartupLanes