Gold and silver prices surged amid a weakening US dollar, easing inflation pressures, and revised bullish forecasts for 2026, signalling a potentially sustained rally supported by central bank demand and geopolitical factors.
Gold and silver extended their recovery in the past two days as a softer US dollar and fading expectations of a Federal Reserve rate increase supported precious metals, while cooling crude prices eased some inflation pressure, according to market commentary from Chennai. In international trade, gold rose as high as $4,300 an ounce after recently slipping to $3,995 on July 29. On India’s Multi Commodity Exchange, the metal climbed to about Rs 1.50 lakh per 10 grams from Rs 1.40 lakh, while silver advanced from $56.75 to $62.90 an ounce overseas and from Rs 2.28 lakh to Rs 2.4 lakh per kilogram in the domestic market.
Ajay Kedia, managing director of Kedia Commodities, said the odds of a September Fed rate increase had become slim, a shift that helped weaken the dollar and improve the backdrop for bullion. He added that Friday’s US jobs data could steer attention back towards the wider economy if the figures come in below expectations. The move marks a renewed leg higher after a pause in the recent rally, with traders watching whether the recovery can hold if US economic data softens further.
Broader research from the World Gold Council points to the same underlying forces shaping the market: geopolitical strain, a weaker dollar, central bank buying and stronger investor demand all helped gold in 2025, while 2026 is expected to depend on growth, interest rates and risk appetite. The council said gold remains an important portfolio diversifier during periods of volatility. In a separate outlook, the group said financial market swings and geopolitical risk tend to support the metal, especially when inflation remains sticky and investors seek inflation hedges.
Deutsche Bank has also turned more constructive, lifting its 2026 gold forecast to $4,450 an ounce from $4,000, according to Investing.com, and saying central bank demand and steadier investor flows should continue to underpin prices. The bank’s wider range of $3,950 to $4,950 suggests there may still be room for more upside. For silver and other precious metals, analysts say years of undersupply could leave them more sensitive to any further strength in gold.
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