Gold prices rise to a two-month peak supported by a softer US dollar and lower inflation expectations, with traders eyeing energy prices and Federal Reserve signals for further gains amid geopolitical and economic uncertainties.
Gold prices climbed at the start of the week as a softer US dollar and fading expectations of a Federal Reserve rate increase in September supported bullion, with traders also watching energy prices for signs of whether the rally can extend further.
According to Analytics Insight, gold on the Multi Commodity Exchange rose 0.34% to ₹1,55,030 per 10 grams on August 17, 2026. Spot gold gained 0.4% to $4,391.07 an ounce, its highest level in two months, while Brent crude edged up 0.17% to $88.67 a barrel.
Tim Waterer, chief market analyst at KCM Trade, said softer inflation data had left the dollar under pressure and given gold room to move closer to $4,400 an ounce. He added that a sustained push above $4,500 would probably need either further dollar weakness or a clearer decline in energy prices.
The rally comes against a broader backdrop of support for precious metals from macroeconomic uncertainty, debt concerns and geopolitical risks. WisdomTree has argued in recent market commentary that these factors remain constructive for gold over time, while the World Gold Council’s technical analysis has pointed to an uptrend that can still resume after periods of consolidation. In the near term, Analytics Insight said gold has support at $4,400 and $4,364 an ounce, with resistance at $4,470 and $4,500. On the MCX, support is seen at ₹1,53,650 and ₹1,52,800, while resistance is at ₹1,55,500 and ₹1,56,100.
Silver also remained in focus, with support seen at $63.40 and $62.60 an ounce and resistance at $65.80 and $67. On the MCX, silver support is placed at ₹2,34,000 and ₹2,31,600, while resistance is at ₹2,38,000 and ₹2,41,000.
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