Gold futures for August delivery rose ₹1,303, or 0.93%, to ₹1.41 lakh per 10 grams on the MCX. Meanwhile, silver futures for July delivery climbed ₹2,946, or 1.35%, to ₹2.20 lakh per kg.
Market participants attributed the gains to fresh positions built by traders amid steady spot demand and strength in domestic bullion markets.
Why are gold and silver prices rising in India?
Domestic bullion prices are drawing support from a combination of local buying and elevated global uncertainty.
Earlier in the global session, gold futures had gained on safe-haven demand as geopolitical tensions resurfaced after US President Donald Trump reinstated a blockade on Iranian vessels in the Strait of Hormuz, raising concerns over oil supplies and inflation.
However, bullion later gave up gains after US Federal Reserve Governor Christopher Waller struck a hawkish tone, saying an interest rate hike is now as likely as a rate cut if inflation remains elevated.
Higher interest rates generally reduce the appeal of non-yielding assets such as gold, while a stronger US dollar and rising Treasury yields also weigh on precious metal prices.
Silver, meanwhile, continued to outperform gold in domestic trade, supported by both safe-haven demand and its industrial usage.
What should investors watch?
According to Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions, the near-term direction for gold will depend on whether it can hold above the $4,000-an-ounce level.
He noted that persistent inflation, geopolitical risks and uncertainty over the US Federal Reserve’s policy path remain the key factors influencing bullion prices. A sustained break below $4,000 an ounce could push gold towards $3,900 an ounce, while silver is expected to remain in a broad $58-$63 per ounce range.
Investors will now closely monitor upcoming US inflation data and further developments in the West Asia, as both are likely to shape the outlook for gold and silver prices in the near term.
