India’s gold and silver prices hit weekly highs driven by US inflation data and geopolitical tensions, sparking renewed investor demand for safe-haven assets amid global market uncertainties.
Gold and silver have climbed sharply in India over the past week, with domestic bullion prices and overseas futures both firming as softer United States inflation data strengthened expectations that the Federal Reserve may stay on hold in September. That shift has helped revive demand for non-yielding assets such as gold, even as geopolitical tension in the Middle East continues to lend support to safe-haven buying, according to market commentary cited by Goodreturns and Axios.
Goodreturns said 24-carat gold rose by as much as Rs31,600 per 100 grammes over the week to August 16, while silver gained about Rs5,000 per kilogramme after a volatile stretch. The publication reported that 24-carat gold was quoted at Rs15,513 per gramme, or Rs1,55,130 for 10 grammes, with 22-carat and 18-carat prices also higher. Silver was listed at Rs2.50 lakh per kilogramme.
The rally has also been reflected in exchange-traded and global benchmarks. Goodreturns reported that MCX gold futures ended the week at Rs1,54,590 per 10 grammes, while silver futures closed at Rs2,36,272 per kilogramme. In overseas trading, spot gold was above $4,380 an ounce and spot silver was just below $65 an ounce, leaving both metals on a second straight weekly gain. Axios separately reported that gold had reached $4,465 an ounce on August 13, its highest level in more than two months.
Analysts quoted by Goodreturns said the next leg for bullion will depend on two competing forces: expectations that US interest rates will stay unchanged for now, and persistent uncertainty around Iran and shipping lanes in the Strait of Hormuz. SMC Global Securities said softer-than-expected inflation figures had reduced the odds of a September rate hike, while reminding investors that Fed officials still remain concerned about inflation. Enrich Money’s Ponmudi R said markets would continue to be shaped by easier policy expectations on one side and geopolitical risk on the other. Goodreturns added that traders will watch the Federal Reserve’s July meeting minutes, due on August 19, for clues about the depth of division inside the central bank.
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