Gold and silver prices moved higher in domestic and international markets on Wednesday, August 12, as investors increased exposure to precious metals ahead of key US inflation data. On the Multi Commodity Exchange (MCX), gold futures opened with a gain of Rs 1,182 per 10 grams, while silver futures climbed Rs 2,314 per kg. The move reflects a combination of investment demand, central bank buying and continued uncertainty over global interest rates and geopolitical risks.
The benchmark October gold contract on MCX opened at Rs 1,54,947 per 10 grams, compared with the previous close of Rs 1,53,765. At the time of reporting, the contract was trading at around Rs 1,54,730, up Rs 965. During the session, it touched a high of Rs 1,54,950 and a low of Rs 1,54,411.
Silver also started the session on a strong note. The benchmark September silver contract opened at Rs 2,37,973 per kg, gaining Rs 2,314 from its previous close of Rs 2,35,659. It was later trading at about Rs 2,37,725 per kg, up Rs 2,066. Silver touched an intraday high of Rs 2,38,271 and a low of Rs 2,37,620.
The latest gains extend a broader recovery in the precious metals market. In the physical market, 99.9% purity gold in New Delhi rose Rs 1,200 to Rs 1,57,200 per 10 grams on Tuesday, according to the All India Sarafa Association. Gold has gained Rs 9,800, or 6.65%, over six trading sessions since August 3. Silver also rose Rs 2,000 to Rs 2,42,000 per kg, its highest level in more than two months.
The immediate focus for investors is the US Consumer Price Index (CPI) data due later on Wednesday. The inflation reading could influence expectations about the Federal Reserve’s monetary policy and the direction of US interest rates. For gold investors, the relationship is important because bullion does not generate interest income. When interest rates and bond yields fall, the opportunity cost of holding gold declines, potentially making the metal more attractive.
Markets have already adjusted their expectations following weaker-than-expected US jobs data. Traders have reduced the probability of a Federal Reserve rate hike in September to 48%. At the same time, policymakers remain cautious about inflation. Chicago Federal Reserve President Austan Goolsbee has indicated that inflation remains a concern, adding another layer of uncertainty ahead of the CPI release.
US Treasury yields are another factor supporting bullion prices. Lower yields can encourage investors to look towards gold because the relative disadvantage of holding a non-yielding asset becomes smaller. Any indication that inflation is easing could strengthen expectations of a softer monetary policy stance and provide additional support to gold prices.
Global geopolitical developments are also keeping precious metals in focus. Uncertainty surrounding the US-Iran conflict, the Strait of Hormuz and disruptions involving shipping have pushed energy markets into sharper focus. Higher crude oil prices could increase inflationary pressure, potentially forcing central banks to maintain restrictive interest rates for longer. That creates a delicate balance for gold, as stronger safe-haven demand can support prices while higher rates can work in the opposite direction.
International prices remained firm as well. On Comex, gold was trading around $4,473.50 per ounce at the time of reporting, after touching $4,435 earlier in the session. Silver was trading near $65.90 per ounce. Business Standard reported gold around $4,475 per ounce and silver around $66 per ounce in the global market.
Gold had earlier reached its highest level since June 5 before facing technical resistance near its 100-day moving average. Spot gold was up 0.3% at $4,377.79 per ounce early Wednesday, while US gold futures for December delivery were little changed at around $4,438.
Silver has been attracting attention because its price movement has been supported by both investment sentiment and industrial demand. Unlike gold, silver has a substantial industrial use base, which means its price can respond not only to interest rates and investor behaviour but also to expectations for manufacturing and economic activity. The metal has remained above $64 an ounce in global trading and has continued to benefit from the broader strength in precious metals.
For Indian investors and consumers, the latest rise means gold prices are once again close to elevated levels after a strong recovery over the past week. The rally has been particularly notable in the physical bullion market, while MCX gold and silver futures have also gained.
The next major direction for gold prices will depend on the US inflation numbers and how financial markets interpret them. A softer-than-expected CPI reading could strengthen expectations of easier monetary policy and support bullion. A stronger inflation figure, however, could revive concerns about higher-for-longer interest rates.