Gold Heads for Third Consecutive Weekly Gain; Silver Surges on Weaker Dollar and Geopolitical Tensions

Mumbai, Aug 22: Precious metals witnessed a robust week of trading from 16 August to 21 August 2026, with both gold and silver recording significant gains in domestic and international markets. Gold remained on track for its third consecutive weekly gain, supported by a weaker US dollar, the US Treasury’s bond buyback programme, and escalating geopolitical tensions in West Asia. Silver, meanwhile, outpaced gold with a sharp rally driven by industrial demand and safe-haven buying. 

Global Gold Prices Surge 3.6% Weekly; Spot Gold Holds Above $4,500 Per Ounce 

International gold markets exhibited strong upward momentum throughout the week. Spot gold was up 0.5% at $4,540.18 per ounce by 0254 GMT on Friday, after hitting its highest level since early June in the previous session. Prices climbed 3.6% for the week, marking the third consecutive weekly gain. US gold futures rose 0.6% to $4,596.60. By Friday afternoon, spot gold was little changed at $4,514.23 per ounce, with prices up 3.2% for the week. 

The dollar headed for a weekly loss, making greenback-priced bullion more affordable for buyers overseas. US Treasury Secretary indicated he may further increase the government’s repurchases of Treasuries, while the Treasury announced it would double the size of buybacks on longer-dated securities over the next quarter to at least $4 billion per operation. The dollar index declined by 0.20%, looking set to end lower for the week. US 30-year bond yields looked set to end the week lower following the buyback announcement. 

The LBMA Gold Price PM rose 9% in the first two weeks of August to $4,391 per ounce. Spot gold fell 0.7% to $4,487.63 per ounce on one session during the week, though the overall trend remained firmly bullish. Spot gold climbed 1% to $4,562.86 per ounce at one point, hitting its highest since 29 May. 

Global Silver Rallies Above $68 Per Ounce; Tests Key Resistance Levels 

Silver outperformed gold during the week, with spot silver up 1.3% to $68.92 per ounce on Friday. The white metal settled around $68 on 20 August after its strongest daily percentage advance since early August. Silver futures entered a significant bullish breakout phase, trading near $68.94 after reaching an intraday high of $69.10. COMEX silver was quoted at $69.38, up $1.2 or 1.88%. 

The rally was supported by dollar weakness, shifting Treasury yields, and expanding industrial consumption for silver, particularly from the green energy sector. Silver tested key resistance at $66-$67 during the week and cleared Weekly Sell 1 at $66.99 while testing Weekly Sell 2 at $68.88. Bullish momentum was reflected in both daily and weekly charts. 

Other precious metals also recorded gains during the week. Platinum climbed 2.4% to $1,872.64 per ounce, while palladium gained 1.3% to $1,351.28 per ounce. All three metals—platinum, palladium, and silver—were headed for weekly gains. 

MCX Gold October Futures Surge to ₹1,60,780; Silver September Contracts Hit ₹2,45,420 

The domestic bullion market mirrored the global trend, with gold and silver prices climbing on the Multi Commodity Exchange throughout the week. 

On Monday, 17 August, MCX gold futures with October 2026 expiry gained over 1% to touch ₹1,56,155 per 10 grams. Silver futures with September expiry inched higher by more than 1% to ₹2,38,479 per kilogram. Physical gold with 24-karat purity also gained 0.34% to ₹1,55,660 per 10 grams, while 22-karat purity gained 0.35% to ₹1,42,700 per 10 grams. 

By Tuesday, 18 August, profit booking led to a correction in prices. MCX gold October futures fell 0.55% to ₹1,55,090 per 10 grams, while MCX silver September futures tumbled 1% to ₹2,35,655 per kilogram. In the spot market, 24-carat gold fell ₹690 to ₹1,55,520 per 10 grams, while 22-carat gold traded at ₹1,42,900 per 10 grams. 

The momentum resumed by Thursday, 20 August, as MCX gold futures were trading at ₹1,58,294 per 10 grams, up ₹289 or 0.19% from the previous close. Domestic spot gold prices edged up slightly to trade at ₹1,58,300 per 10 grams. 

On Friday, 21 August, MCX gold October futures were 0.17% up at ₹1,59,700 per 10 grams around 9:15 PM. By 9:03 AM, gold was trading 0.60% higher at ₹1,60,388 per 10 grams. As of 12:57 PM, gold futures expiring on 5 October were trading at ₹1,60,780 per 10 grams, registering a gain of 0.85%. MCX gold rate was also trading 0.19% higher at ₹1,60,180 per 10 grams around 9:13 am. 

Silver showed even stronger gains on Friday. MCX silver September contracts were 0.48% up at ₹2,44,400 per kg around 9:15 PM. By 9:03 AM, silver was trading 1.18% higher at ₹2,46,113 per kg. Silver futures expiring on 4 September gained 0.89% to trade at ₹2,45,420 per kilogram by 12:57 PM. MCX silver futures were also trading about 0.65% higher at ₹2,45,990 per kg around 9:13 am. MCX silver futures for September 2026 delivery were up ₹1,915 at ₹2,45,158 per kg during the session. 

Key support and resistance levels for MCX gold were identified at ₹1,58,000 and ₹1,56,650 on the downside, with resistance at ₹1,60,600 and ₹1,61,800. Silver had support at ₹2,41,000 and ₹2,38,800, with resistance at ₹2,46,600 and ₹2,50,000. 

City-Wise Gold and Silver Retail Prices: Southern Cities Command Premium Over Northern Markets 

Retail gold prices varied across major Indian cities on 21 August, with southern markets recording the highest figures. Chennai led the metros with a peak rate of ₹1,60,050 per 10 grams for 24-carat gold, followed by Hyderabad at ₹1,59,840 and Bengaluru at ₹1,59,710. 

Mumbai, the financial heart of the country, saw 24-carat gold retailing at approximately ₹1,59,580 per 10 grams. Kolkata followed a similar trend at ₹1,59,370. Delhi recorded the lowest among the metros at ₹1,59,310 per 10 grams for 24-carat gold. 

The city-wise price variation reflected local demand-supply dynamics, state-level taxes, and making charges applied by jewellers. Chennai’s premium over Delhi stood at approximately ₹740 per 10 grams, indicating stronger demand in southern markets. 

For 22-carat gold, prices ranged between ₹1,46,034 and ₹1,46,713 per 10 grams across major cities. Chennai again led at ₹1,46,713, followed by Hyderabad at ₹1,46,520 and Mumbai at ₹1,46,282. The difference between 24-karat and 22-karat prices reflected the purity differential, with 22-karat gold containing 91.67% pure gold compared to 99.9% in 24-karat. 

Silver retail prices also showed significant variation across cities on 21 August. Chennai recorded the highest at ₹2,44,670 per kg, followed by Hyderabad at ₹2,44,350 and Bengaluru at ₹2,44,160. Mumbai saw silver retailing at ₹2,43,960 per kg, while Kolkata and Delhi recorded ₹2,43,640 and ₹2,43,540 per kg respectively. The India Bullion and Jewellers Association sets the daily base price of gold in India, serving as the national benchmark for bullion rates. 

Softening US Inflation and Fed Rate Expectations Drive Bullion Demand 

The rally in precious metals was supported by multiple factors during the week. Cooling inflation figures in the US, with the headline consumer price index dropping to an annual rate of 3.40% in July 2026, and the producer price index remaining unchanged, signalled easing price pressures. Initial jobless claims stabilised around 209,000, indicating a labour market that allows policymakers room to unwind restrictive monetary measures. 

According to the CME FedWatch Tool, traders priced in a 69.90% probability that the US Federal Reserve would hold interest rates steady at its September meeting, up from 47.60% a month ago. The benchmark 10-year US Treasury yield retreated toward 3.88%, while the US Dollar Index dropped near the 102.50 level. 

Analysts noted that a softer US dollar and reduced Fed rate-hike expectations were the main drivers, following a run of soft July data including a surprise 23,000 nonfarm payroll decline. Lower rate-hike odds reduce the opportunity cost of holding non-yielding metals, which supported both gold and silver prices throughout the week. The US Treasury’s bond buyback announcement on 19 August further dampened bond yields, with the 10-year yield declining 1.13% and the dollar index dropping 0.83%, providing additional support to bullion prices. 

Geopolitical Tensions and Strong Industrial Demand Add to Upward Pressure 

Heightened geopolitical tensions in West Asia further fuelled safe-haven demand for precious metals. The US-Iran conflict intensified during the week, with US officials stating that the war with Iran has entered a new phase, with the Trump administration increasingly relying on economic pressure. The US Treasury Secretary said the United States would impose the toughest sanctions in history on Iran. The UAE suspended all financial and economic transactions with Tehran after accusing Iran of launching ballistic missiles at its territory, further escalating regional tensions and driving safe-haven flows into gold. 

Expanding industrial consumption for silver, particularly from the green energy sector, also supported prices. The renewable energy transition has fueled record industrial silver fabrication demand, providing an additional tailwind for the white metal. The global push toward electrification, solar energy, and electric vehicles has increased silver’s industrial usage, making it more sensitive to economic growth expectations than gold. 

The combination of dollar weakness, falling bond yields, geopolitical uncertainty, and strong industrial demand created a perfect storm for precious metals, with both gold and silver benefiting from the confluence of supportive factors. Investors across global markets sought refuge in bullion as a hedge against geopolitical risks and currency depreciation, driving prices higher across the board. 

The week witnessed sustained bullish momentum in precious metals, with gold on track for its third consecutive weekly gain and silver outperforming on industrial demand. A weaker dollar, lower US Treasury yields, and escalating geopolitical tensions in West Asia were the primary drivers. The US Treasury’s bond buyback programme and cooling inflation data reinforced the supportive environment. Domestic markets mirrored global trends, with MCX gold approaching the ₹1,60,000 level and silver surpassing ₹2,45,000. Southern Indian cities continued to command a premium over northern markets in retail gold prices, reflecting regional demand patterns and local tax structures. 

Source 

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