Gold prices remained firm on Tuesday, August 25, with MCX gold trading higher at ₹1,63,640 per 10 grams, while silver futures were quoted at ₹2,43,730 per kg. The movement in precious metals came as investors continued to track geopolitical tensions, the US dollar, interest-rate expectations and developments in global markets.
Gold has remained one of the stronger-performing assets in recent sessions. The precious metal moved to a more than three-month high earlier in the day in international markets, although prices later eased as investors turned their attention to upcoming US inflation data and comments expected from Federal Reserve Chair Kevin Warsh.
In the domestic market, MCX gold futures were trading at ₹1,63,640 per 10 grams. The price has remained close to the ₹1.65 lakh level, reflecting strong demand for the yellow metal. Gold has benefited from a combination of factors, including a weaker US dollar, expectations around US monetary policy and continued geopolitical uncertainty.
Silver, meanwhile, was trading at ₹2,43,730 per kg on the Multi Commodity Exchange. The metal has been more volatile than gold in recent sessions. International silver prices also came under pressure on Tuesday, with spot silver falling more than 1% to around $68 an ounce.
The latest movement comes after a strong rally in bullion prices. Gold had climbed for four consecutive sessions before Tuesday’s correction in the international market. Investors have been buying gold as a hedge against economic and geopolitical risks, while the prospect of easier financial conditions has also supported demand.
One of the major factors influencing gold prices is the US dollar. A weaker dollar generally makes gold cheaper for buyers using other currencies and can therefore increase demand. US Treasury yields and expectations about interest-rate cuts also remain important because gold does not pay interest or dividends.
Investors are now waiting for key US inflation data for further clues about the Federal Reserve’s next policy move. The upcoming speech by Fed Chair Kevin Warsh at the Jackson Hole conference is also being closely watched. Any indication of a change in the central bank’s approach to interest rates could influence both the dollar and gold prices.
Geopolitical developments are another major factor supporting bullion. Tensions between the United States and Iran have increased following Washington’s announcement of tougher measures aimed at putting further pressure on Iran’s economy. Concerns over the wider impact of the conflict have added to demand for traditional safe-haven assets such as gold.
The rise in gold prices has also been reflected in India’s retail bullion market. According to the latest rates, 24-carat gold was around ₹16,397 per gram, while 22-carat gold was around ₹15,030 per gram. The 18-carat rate was about ₹12,293 per gram. Retail prices can vary slightly between cities because of local taxes, transportation costs and jeweller-specific pricing.
For consumers, the difference between 24-carat and 22-carat gold is important. Twenty-four-carat gold has the highest purity and is commonly preferred for investment products such as coins and bars. Twenty-two-carat gold is widely used for jewellery because it is harder and more durable after being mixed with other metals.
Gold jewellery buyers should also remember that the final price is not simply the quoted gold rate. Making charges, GST and other applicable costs are added to the price of jewellery. The amount can therefore vary significantly from one jeweller to another even when the underlying gold rate is similar.
Silver has also seen a sharp rise over the longer term, supported by demand from both investors and industries. Unlike gold, silver has substantial industrial use in electronics, solar equipment, manufacturing and other applications. This means its price can respond not only to investment demand but also to expectations about global economic growth.
The current difference between gold and silver highlights the changing mood in the precious metals market. Gold continues to attract safe-haven buying, while silver has faced some profit-taking after its recent gains. International spot gold was around $4,640 an ounce after touching a three-month high, while silver was around $68 an ounce.
Gold has also recorded a strong rise during August. The domestic market has seen prices move sharply higher from the beginning of the month, keeping the metal close to record levels. This has increased interest among investors looking at gold as part of their portfolios, while high prices have made jewellery purchases more expensive for consumers.
Going forward, bullion traders will closely monitor US inflation figures, Federal Reserve signals, the dollar, Treasury yields and geopolitical developments. Any fresh escalation in the US-Iran situation could increase safe-haven demand and support gold, while a stronger dollar or higher interest-rate expectations could limit its gains..