Gold Ends July with 0.6% Gain; Silver Slumps 5.2% as Dollar Recovery, Fed Hawks Weigh

Mumbai, August 1: The week ended 31 July 2026 proved to be a volatile one for precious metals, with gold and silver tracing divergent paths across global and domestic markets. While gold managed to secure its first monthly gain since February 2026, silver extended its losing streak for a second consecutive month, weighed down by industrial demand concerns and a stronger dollar.  

The week was marked by shifting geopolitical dynamics in the Middle East, a pivotal US Federal Reserve policy meeting, and fluctuating crude oil prices, all of which kept bullion traders on edge. 

Gold Holds Steady in July as Silver Logs Worst Monthly Performance in Over a Year 

The monthly performance data for July 2026 painted a mixed picture for precious metals. Gold remained up 0.60% for July, marking its first monthly gain since February, as safe-haven demand and dollar weakness provided support.  

Silver, in contrast, ended the month down 5.21%, recording its second consecutive monthly decline and its worst monthly performance in over a year. The divergence between the two metals reflected gold’s stronger safe-haven appeal amid geopolitical uncertainty, while silver faced additional headwinds from its industrial demand profile. 

Gold and Silver Surge as Middle East Pause and Dollar Weakness Drive Safe-Haven Buying 

The trading week began on a strong note for both precious metals. Gold and silver prices surged on Monday, 27 July, driven by a weaker US dollar and easing inflation concerns following a temporary pause in hostilities between the United States and Iran. On the Multi Commodity Exchange (MCX), August gold futures gained 0.75% to reach ₹1,44,173 per 10 grams, while September silver futures rose by 1.22% to ₹2,24,844 per kg. In the international market, COMEX gold gained 0.71% to approximately $4,099.9 per troy ounce, with spot gold trading at $4,096.72 per ounce, up by $3.81 or 0.09%. 

The rally was supported by a pause in Middle East hostilities that eased pressure on crude oil prices and tempered inflation concerns ahead of the Fed’s policy meeting. MCX gold futures traded at ₹1,44,130 per 10 grams, up ₹1,024 or 0.72%, while MCX silver futures jumped ₹2,525, or 1.14%, to ₹2,24,663 per kg. Across major Indian cities, retail gold prices surged, with 24-carat gold in Delhi rising by ₹960 to reach approximately ₹1,45,000 per 10 grams, while 22-carat gold in Delhi increased by ₹850 to ₹1,33,850 per 10 grams. The average price of 24-carat gold stood at ₹14,586 per gram, a gain of ₹93 from the previous day. 

Metals Retreat as Hawkish Fed Expectations and Stronger Dollar Trigger Profit-Booking 

The bullish sentiment proved short-lived as Tuesday saw a sharp reversal. Gold and silver prices retreated sharply on 28 July, with gold dropping ₹2,640 to ₹1.47 lakh per 10 grams in the domestic market, while silver slid ₹5,200. On the MCX, August gold futures closed at ₹1,41,530 per 10 grams, a decline of 0.07% , while September silver futures inched 0.03% lower to ₹2,15,900 per kg. The domestic MCX spot gold closed the session at ₹1,41,623 per 10 grams. 

In the international market, the sell-off was more pronounced. COMEX gold fell 0.94% to settle at $4,036.30 per ounce, snapping a two-session winning streak. Spot gold dropped 1.17% to $4,028.70 per ounce, trading in a range of $4,083.01 to $4,011.82. COMEX gold futures declined 1.11% to $4,090.40 per ounce. Silver fared even worse, with spot silver falling 2.12% and COMEX silver futures dropping 2.7% to $57.14 per ounce. The August gold futures contract on COMEX traded at $4,029.60 per troy ounce, down $47.40 or 1.16% from the previous settlement. 

The decline was attributed to profit-booking ahead of the Fed’s monetary policy meeting, with traders positioning for potential hawkish signals. The dollar’s strength and elevated US Treasury yields also weighed on bullion prices. 

 Mixed Trend as Gold Falls, Silver Rises Ahead of Fed Decision 

Wednesday witnessed a mixed performance as markets awaited the Federal Reserve’s policy decision. Gold futures traded lower in early trade, while silver futures gained. On the MCX, August gold futures opened at ₹1,41,519 per 10 grams and traded at ₹1,41,380, down ₹243. In contrast, September silver futures opened at ₹2,16,834 per kg and traded at ₹2,16,655, up ₹815. 

In the international market, COMEX gold traded near $4,025 per ounce, while silver was around $58 per ounce. COMEX gold opened at $4,020.90 per ounce and traded at $4,024.30, down $14.40. COMEX silver futures opened at $57.38 per ounce and recovered to trade at $58.15, up $0.63. 

Retail gold prices in India averaged ₹1,42,250 per 10 grams for 24K gold, while 22K gold was at ₹1,30,396 per 10 grams. Chennai reported the highest gold prices among major cities, while Delhi recorded the lowest. City-wise, 24K gold was priced at ₹1,42,000 in Mumbai, ₹1,41,750 in Delhi, ₹1,42,410 in Chennai, ₹1,41,810 in Kolkata, ₹1,42,110 in Bengaluru, and ₹1,42,220 in Hyderabad per 10 grams. Silver 999 fine stood at ₹2,16,480 per kg, with Chennai again recording the highest price at ₹2,16,720 per kg and Delhi the lowest at ₹2,15,720 per kg. 

Also Read: How to Invest in Gold Online 

Gold Jumps 1% as Fed Holds Rates Steady; Silver Slips on Industrial Demand Concerns 

Thursday brought a significant rally for gold after the US Federal Reserve kept its benchmark interest rate unchanged at 3.50%-3.75%. However, the decision was far from unanimous, with three policymakers dissenting and voting in favour of an immediate 25-basis-point rate hike. The Fed’s status quo decision weighed on the US dollar, providing a boost to bullion. 

Gold jumped 1% on the MCX, with the near-month gold futures contract gaining ₹1,451 in the previous session. On Thursday, MCX gold was trading 0.02% higher at ₹1,41,803 per 10 grams, while silver was trading 0.70% lower at ₹2,15,948 per kg. In the international market, spot gold was up 0.2% at $4,071.89 per ounce, briefly crossing the $4,100 mark to touch its highest level since 23 July after the Fed’s decision weighed on the dollar. 

On the MCX, gold futures rose ₹176 to ₹1,41,957 per 10 grams amid short covering, touching a high of ₹1,42,039 during the session. Silver futures, however, dropped ₹1,479 to ₹2,16,000 per kg, touching a low of ₹2,15,702. In the international market, COMEX gold opened at $4,060.70 per ounce and traded at $4,054.50, up $18.20. COMEX silver opened at $57.97 per ounce and traded at $57.76, down $0.32. 

Retail gold prices on Thursday saw 24-carat gold at ₹1,44,310 per 10 grams in Delhi and Chennai, while it was ₹1,44,160 in Mumbai, Kolkata, and Hyderabad. Silver prices remained uniform across major cities at ₹2,349 per 10 grams, ₹23,490 per 100 grams, and ₹2,34,900 per kilogram. 

Gold and Silver Fall as Dollar Rebounds and Fed Hawks Reiterate Rate Hike Calls 

The week ended on a weak note as gold and silver prices retreated on Friday, 31 July, following a rebound in the US dollar and hawkish comments from Federal Reserve officials. COMEX gold futures fell $84 per troy ounce to an intraday low of $4,076, giving up part of Thursday’s $124 rally. Silver fell $1.80 per troy ounce to $57.22. 

In the domestic market, MCX gold August futures were about 0.50% down at ₹1,42,547 per 10 grams, while MCX silver September contracts were 0.40% down at ₹2,19,117 per kg around 9:10 AM. The near-month MCX gold futures contract edged up ₹168 to an intraday high of ₹1,44,224, while the near-month MCX silver futures contract declined ₹3,527 per kg to ₹2,15,564. 

The pullback was driven by a rebound in the US Dollar Index to 100.3, although the index remained down nearly 1.5% for the week. The dissenting Fed officials reiterated that further monetary tightening is necessary to bring inflation back to the target level. The escalating US-Iran conflict kept oil prices elevated, with Brent crude trading near $88 per barrel on Friday morning. The dollar index climbed about 0.40%, making gold more expensive for overseas buyers. 

Retail gold prices on Friday showed marginal declines across major cities. In New Delhi, 24-karat gold was at ₹1,43,370 per 10 grams and 22-karat at ₹1,31,423 per 10 grams. In Mumbai, 24-karat gold was at ₹1,43,620 and 22-karat at ₹1,31,652. In Kolkata, 24-karat gold was at ₹1,43,430 and 22-karat at ₹1,31,478. In Bengaluru, 24-karat gold was at ₹1,43,720 and 22-karat at ₹1,31,753. Silver 999 fine was priced at ₹2,18,800 per kg in Delhi, ₹2,19,180 in Mumbai, ₹2,18,890 in Kolkata, and ₹2,19,350 in Bengaluru. 

Geopolitical Tensions and Fed Policy Remain Key Drivers of Bullion Volatility 

Throughout the week, geopolitical tensions in the Middle East remained a dominant theme influencing precious metal prices. The US-Iran conflict escalated further during the week, with Jordan’s air defences shooting down five missiles launched from Iran on Thursday. The conflict expanded to other countries, with Egypt and Saudi Arabia becoming increasingly drawn into it. The Middle East conflict kept oil prices elevated, with Brent crude trading near $88 per barrel on Friday morning. 

The US Federal Reserve’s policy meeting on 29 July was another critical driver. While the Fed kept rates unchanged, the three dissenting votes in favour of a hike underscored growing discomfort among policymakers about inflation, which has remained above the Fed’s 2% target for more than five years. US inflation eased in June, with the PCE Price Index declining 0.1% month-over-month after climbing 0.5% in May, and the CPI easing to 3.5% in June from 4.2% in May. However, experts believe inflation could rebound due to higher energy prices driven by the Middle East conflict and US tariff policy. 

The week’s bullion market was characterised by significant volatility driven by geopolitical developments and Fed policy dynamics. Gold’s ability to end July with a 0.6% gain despite a late-week dollar recovery highlights its safe-haven appeal amid Middle East tensions. Silver’s 5.21% monthly decline underscores its dual sensitivity to both investment demand and industrial outlook, with the stronger dollar exerting additional pressure. The divergent performance between the two metals suggests that gold continues to attract flight-to-safety flows, while silver faces headwinds from its industrial demand profile and broader economic uncertainty. Market participants should monitor geopolitical developments in the Middle East, Fed policy signals, and dollar movements for future price direction. 

Source 

• https://silverprice.org/silver-price-india.html 
• https://goldprice.org/gold-price-india.html