Gold jumps ₹6,400 in 3 days
What's the story
Gold and silver prices have seen a significant increase for the third consecutive session on MCX. The rise is attributed to a weaker US dollar, lower Treasury yields, and easing oil prices amid hopes of reopening the Strait of Hormuz. Gold futures for October delivery rose by ₹757 to ₹1,49,250 per 10gm while silver futures for September delivery gained by ₹228 at ₹2,27,812/kg. Silver and gold are up by ₹11,016 (5.2%) and ₹6,335 (4.4%), respectively, in the last three sessions.
Market response
Factors influencing gold's rise
The market's reaction to these price changes has been influenced by the potential diplomatic resolution in the Middle East.
This development has led to a decline in oil prices and lowered expectations of further interest rate hikes by central banks.
These factors have created a favorable environment for gold, which typically thrives in low-interest-rate scenarios due to its lack of yield.
Deal implications
Proposed Iran-Oman-US agreement could impact oil prices
A proposed agreement between Iran and Oman to end the five-month-long conflict with the US could give Tehran control over ships entering the Gulf through the Strait of Hormuz.
This potential development has further contributed to lower oil prices.
Notably, spot gold has fallen 19% since February 28, 2026 due to concerns over energy-driven inflation fueling expectations of higher interest rates.
Rate adjustments
US rate hike expectations shift boosts gold
The easing of market expectations for a US rate hike in September from 67% to 55% has also contributed to gold's rise.
Spot gold rose 1.4% to $4,133.83 per ounce, its highest level in two weeks.
Gold futures were up 1% at $4,191.90 while spot silver edged up 0.1% to $62.16 per ounce as other precious metals like platinum and palladium saw gains too.
Price forecast
Expert suggests buying gold, silver on MCX
Manoj Kumar Jain of Prithvi Finmart has predicted that gold and silver prices will remain volatile this week due to fluctuations in crude oil prices, dollar index movements, and ongoing geopolitical tensions.
He advised buying gold above ₹1,48,800 with a stop loss below ₹1,47,400 for targets of ₹1,50,500-₹1,51,100.
For silver, he suggested buying above ₹2,29,100 with a stop loss below ₹2,26,000 for target levels of ₹2,31,000-2,33,300.