Gold prices rise Rs 6,600/10g in 3 days; silver jumps Rs 16,200/kg ahead of US inflation data. Big rally brewing?

Gold and silver prices opened sharply higher on the MCX on Tuesday, as investors awaited US inflation data for fresh signals on the Federal Reserve's interest-rate path. The latest rally comes despite Middle East war worries as Hormuz reopening hopes remain dim.

In the domestic market, MCX silver futures for September 2026 delivery were up Rs 5,132 at Rs 2,41,999 per kg. Gold futures for October 2026 delivery rose by Rs 2,338 to Rs 1,55,437 per 10 grams. In the last three days, the white metal has gained over Rs 16,000 or more than 7%, while gold has risen by Rs 6,600 or more than 4%.

Markets are now looking ahead to the US consumer price report due on Wednesday, followed by producer price data on Thursday. The data could influence expectations for monetary policy after weak US jobs data for July prompted markets to reduce bets of a Federal Reserve rate hike next month.


The Fed left interest rates unchanged at its July meeting, with three officials dissenting in favour of a hike. Lower interest rates tend to support gold because the metal does not pay interest.

"If the data continue to point towards a cooling economy without a meaningful resurgence in inflation, markets could further reduce expectations for tighter policy. That would likely leave the dollar vulnerable and provide another supportive backdrop for gold," said Fawad Razaqzada, a market analyst at Forex.com.

Geopolitical tensions also remained in focus. US President Donald Trump responded to Iran's conditions for a peace deal by demanding that Tehran compensate people killed in wars, attacks and protests. The escalation could further complicate efforts to reopen the Strait of Hormuz.

Also read: Gold prices jump 7% to log best weekly gain in 8 months. Start of another yellow metal bull run?

Gold, silver international prices

Spot gold rose 1% to $4,432.74 per ounce by 0217 GMT, its highest level since June 5. US gold futures gained 1.7% to $4,492.60.

Among other precious metals, spot silver gained 0.9% to $66.30 an ounce, platinum rose 0.7% to $1,765.26, and palladium climbed 0.8% to $1,394.00.

How should you trade gold?

Manoj Kumar Jain of Prithvi Finmart said gold has support at $4,355-4,320 per troy ounce, while resistance is placed at $4,440-4,500. For silver, support is seen at $62.40-61.60, with resistance at $65.20-67.00 per troy ounce.

On the MCX, gold has support at Rs 1,50,500-1,49,100 and resistance at Rs 1,53,650-1,55,000, while silver has support at Rs 2,29,200-2,27,000 and resistance at Rs 2,34,400-2,38,000.

Jain recommends buying gold on dips in the Rs 1,51,000-1,50,000 range, with a stop loss below Rs 1,48,800 and a target of Rs 1,53,000-1,54,400. For silver, he recommends buying around Rs 2,29,000-2,27,000, with a stop loss below Rs 2,24,000 and a target of Rs 2,34,400-2,38,000.

Read more: Explained: Why South Korea bought gold after 13 years and what it means for yellow metal investors?

Gold rates in physical markets

Gold Price today in Delhi

Standard gold (22 carat) prices in Delhi stand at Rs 1,11,552/8 grams while pure gold (24 carat) prices stand at Rs 1,21,688/8 grams.

Gold Price today in Mumbai

Standard gold (22 carat) prices in Mumbai stand at Rs 1,11,432/8 grams while pure gold (24 carat) prices stand at Rs 1,21,568/8 grams.

Gold Price today in Chennai

Standard gold (22 carat) prices in Chennai stand at Rs 1,11,592/8 grams while pure gold (24 carat) prices stand at Rs 1,21,736/8 grams.

Gold Price today in Hyderabad

Standard gold (22 carat) prices in Hyderabad stand at Rs 1,11,432/8 grams while pure gold (24 carat) prices stand at Rs 1,21,568/8 grams.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)