Weekly Bullion Review: Gold Surges Over 5%, Silver 6.5% as US-Iran Peace Hopes and Falling Oil Prices Drive Rally 

Mumbai, Aug 8: Gold and silver prices posted strong weekly gains in both global and domestic markets during the week ended August 7, 2026, as easing geopolitical tensions between the United States and Iran, a sharp decline in crude oil prices, a weaker US dollar, and expectations of Federal Reserve rate cuts fueled a sustained rally in precious metals. 

The week marked a significant turnaround for bullion, which had been under pressure since the outbreak of the US-Iran conflict more than five months ago. Gold recorded its first monthly gain in July and carried the momentum into August, with prices surging over 5% for the week. Silver outperformed gold, climbing approximately 6.5% during the same period. 

Global Gold Rallies From $4,055 to $4,300 as Geopolitical Risk Premium Eases 

The global gold market witnessed a steady uptrend throughout the week, driven primarily by developments in US-Iran relations. On Sunday, August 2, US President Donald Trump announced that he had called off a planned strike on Iran and would begin fresh negotiations with Tehran, raising hopes for a diplomatic resolution to the conflict that had disrupted energy supplies through the Strait of Hormuz. 

Spot gold opened the week at approximately $4,055.76 per ounce on Monday, August 3, up 0.4% from the previous session, as oil prices slumped over 5% following the announcement. Comex gold futures rose 0.9% to $4,054.00. The US dollar came under pressure after authorities intervened in the foreign exchange market to support the yen, making dollar-priced bullion more affordable for overseas buyers. 

By Tuesday, August 4, spot gold steadied around $4,055.39 per ounce as markets awaited clarity on the Federal Reserve’s interest rate policy and the Middle East conflict. Comex gold futures rose 0.6% to $4,055.10. However, analysts noted that gains remained limited given the uncertainty surrounding oil markets and geopolitical developments. 

Wednesday, August 5, saw gold scale a one-month peak, with spot gold climbing 2.2% to $4,164.13 per ounce by 0836 GMT, its highest level since July 7. Comex gold futures surged another $173 per troy ounce to $4,325, its highest level since mid-June. The rally was fueled by a combination of falling oil prices, a weaker dollar, and expectations that easing inflation pressures could give the Federal Reserve more room to cut interest rates. 

Thursday, August 6, marked the fourth consecutive session of gains, with spot gold touching $4,285.84 per ounce, the highest level since June 18. Comex gold futures climbed 1.3% to $4,361.30 an ounce. The rally was supported by hopes that the reopening of the Strait of Hormuz would ease energy-driven inflation. 

By Friday, August 7, Comex gold futures had risen from around $4,090 an ounce on August 3 to around $4,350 on August 7. Gold futures rose 1.13% to $4,287.50 an ounce in New York. For the week, gold prices advanced approximately 5.1%. 

Silver Outperforms Gold With 6.5% Weekly Gain, Reaches $61.61 

Silver delivered a stronger performance than gold during the week, benefitting from its dual role as both a precious metal and an industrial commodity. Spot silver began the week at approximately $58.02 per ounce on August 3, climbing 0.7%. 

By Tuesday, August 4, silver futures advanced $2.35 to $60.24 per ounce as Comex gold climbed $61 to $4,151 amid US-Iran de-escalation hopes. Silver prices held above $58 per ounce during the session. 

Wednesday, August 5, saw silver surge approximately 5% intraday to around $62.48 per ounce as the dollar weakened and Treasury yields declined. The metal touched the $63 mark during the session, its highest level in over a month. 

By Thursday, August 6, silver futures opened at $62.20 per ounce but surrendered some intraday gains as profit booking and a firmer dollar weighed. Spot silver rose 0.4% to $62.34 per ounce. 

Friday, August 7, saw silver futures rise 3.44% to $61.66 an ounce in the international market. For the week, silver prices increased approximately 6.5% to $61.61 per ounce. 

MCX Gold Futures Climb to ₹1.50 Lakh per 10 Grams; Silver Reaches ₹2.31 Lakh per kg 

Domestic bullion markets on the Multi Commodity Exchange (MCX) closely tracked global cues throughout the week. On Monday, August 3, MCX gold futures for October delivery were trading at approximately ₹1.43 lakh per 10 grams, up about 0.18%, while silver futures for September delivery gained 0.53% to ₹2.18 lakh per kg. MCX gold rate was trading 0.15% higher at ₹143,640 per 10 grams, while MCX silver futures were trading about 0.27% higher at ₹218,750 per kg. 

The rally gathered momentum as the week progressed. By Wednesday, August 5, MCX gold rate was trading 0.71% higher, while MCX silver futures were trading about 1.08% higher at ₹224,520 per kg. 

Friday, August 7, saw MCX gold futures for October delivery rise ₹1,272, or 0.85%, to ₹1.50 lakh per 10 grams. MCX silver futures for September delivery gained ₹5,496, or 2.43%, to ₹2.31 lakh per kg. 

For the week, MCX gold futures moved from approximately ₹1.43 lakh to ₹1.50 lakh per 10 grams, reflecting a gain of about 5%. MCX silver futures advanced from approximately ₹2.18 lakh to ₹2.31 lakh per kg, representing a gain of nearly 6%. 

Retail Gold Prices Across Indian Cities Show Steady Increase 

Retail gold prices across major Indian cities recorded steady increases during the week, reflecting the rally in international bullion markets. 

On Monday, August 3, 24-carat gold was priced at approximately ₹14,437 per gram in Delhi, ₹14,422 per gram in Mumbai and Kolkata, and ₹14,460 per gram in Chennai. 22-carat gold traded at ₹13,235 per gram in Delhi, ₹13,220 per gram in Mumbai and Kolkata, and ₹13,255 per gram in Chennai. Nationally, 24-carat gold was priced around ₹1,42,960 per 10 grams, while 22-carat gold traded near ₹1,31,050 per 10 grams. 

In Chennai, 22-carat gold prices showed a clear upward trajectory during the week. On August 3, 22-carat gold was priced at ₹13,250 per gram (₹1,06,000 per sovereign). By August 4, it had inched up to ₹13,200 per gram (₹1,05,600 per sovereign). On August 5, prices rose to ₹13,260 per gram (₹1,06,880 per sovereign), and by August 6 and 7, they had climbed to ₹13,750 per gram (₹1,10,000 per sovereign). 

Silver prices in Chennai remained stable during the week. On August 3, silver was priced at ₹235 per gram (₹2,35,000 per kg). By August 5, prices had risen to ₹240 per gram, and by August 7, they had reached ₹250 per gram (₹2,50,000 per kg). 

Bullion Rally Driven by Falling Oil Prices, Weaker Dollar, and Fed Rate Cut Hopes 

Several global factors supported the rally in precious metals during the week. The sharp decline in crude oil prices was a key driver. Brent crude fell from approximately $90.12 a barrel on July 31 to about $83.3 during the week, while West Texas Intermediate futures declined 4.5% to $80.89 per barrel on Monday alone. The drop in oil prices eased immediate inflation concerns and reduced expectations of aggressive monetary tightening. 

The US dollar weakened during the week, making dollar-denominated gold more affordable for buyers holding other currencies. The Bloomberg Dollar Spot Index was 0.2% lower on Monday. Lower US Treasury yields also supported gold, as the opportunity cost of holding a non-yielding asset such as gold declined. 

Expectations that easing inflation pressures could give the Federal Reserve more room to cut interest rates further boosted sentiment. Investors were closely watching US economic data, including the non-farm payrolls report, for clues on the Federal Reserve’s next policy move. 

Market analysts noted that gold’s recent rally was driven by a combination of falling oil prices, weaker US labour market data, lower Treasury yields and changes in geopolitical risk, rather than safe-haven demand alone. 

Gold Rallies Despite Interest Rate Headwinds, Market Sentiment Turns Cautiously Optimistic 

Despite the strong weekly gains, gold remained down by more than a fifth since the US-Iran war began more than five months ago. High energy prices had stoked inflationary pressures and raised the likelihood that interest rates would stay higher for longer — a headwind for precious metals, which do not pay interest. 

However, the prospect of a diplomatic breakthrough between the US and Iran changed the dynamics significantly. Trump said on Sunday that he had called off a massive attack on Iran after allies in the Middle East, including Saudi Arabia, asked him to pursue a deal instead. Brent crude fell more than 7% following the announcement. 

The Federal Reserve’s policy outlook remained a key focus for investors. Three US Federal Reserve officials who dissented at the policy meeting the previous week in favour of a rate hike expressed concerns that without an immediate increase in short-term borrowing costs, inflation would stay stuck above the Fed’s 2% target. 

Market participants also focused on a slew of US jobs reports due during the week, including job openings data, the ADP employment report, weekly jobless claims and the nonfarm payrolls report. 

Analysts Watch $4,300 Level as Key Test for Gold; Silver Targets $70-$71 

Market analysts said the $4,300 level was an important test for gold. A sustained move above it could keep the metal in the $4,350-$4,400 range, while a fall below $4,200 could indicate profit-taking. For silver, a sustained move above $63 per ounce could take prices towards the $70-$71 an ounce range, equivalent to approximately ₹2.50-2.55 lakh per kg in the Indian market. 

For Indian investors, international gold prices are only one part of the equation. The rupee-dollar exchange rate, import-related costs and domestic demand also influence domestic bullion prices. Analysts expected bullion prices to remain sensitive to US employment data, movements in the dollar, crude oil prices and evolving expectations around the Federal Reserve’s interest rate path. 

Market Participants Advised to Maintain Long-Term Perspective Amid Volatility 

Market participants acknowledged that near-term volatility was likely as investors reacted to macroeconomic data and geopolitical headlines. Analysts cautioned against making investment decisions based solely on day-to-day price movements. 

“Investors should avoid making decisions based on daily price fluctuations and instead maintain a long-term approach. Gold and silver continue to play an important role in portfolio diversification and wealth preservation during periods of uncertainty,” said analysts. 

Gold and silver posted robust weekly gains of approximately 5.1% and 6.5% respectively, driven by easing US-Iran tensions, falling crude oil prices, a weaker dollar, and expectations of Fed rate cuts. MCX gold futures rose from ₹1.43 lakh to ₹1.50 lakh per 10 grams, while silver futures climbed from ₹2.18 lakh to ₹2.31 lakh per kg. Retail prices across major Indian cities recorded steady increases, with 24-carat gold in Delhi reaching approximately ₹14,437 per gram by the end of the week. The $4,300 level for gold and $63 for silver remain key technical levels to watch, with US jobs data and Fed policy expectations continuing to influence market sentiment. 

Source 

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

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