Archive · 2 Aug 2026
Gold Prices Drop 1.16% as Dollar Strengthens in India
Gold is a metal that people buy when they want a safe place for their money.
In India, the price of gold went down a little bit last week.
This happened because the U.S. dollar got stronger and the U.S. Treasury bonds were paying more interest.
When the dollar is strong, people are less likely to buy gold.
Some experts think that if oil prices stay high, the U.S. Treasury bonds will keep paying high interest, which will keep gold prices low.
The U.S. Federal Reserve decided not to change interest rates, which made gold prices go up a bit for a short time.
But then the bond yields went up again and gold prices fell.
The price of a small piece of gold, 10 grams, also went down.
This shows how gold prices can change quickly because of what happens in the U.S. economy.
Gold prices fell 1.16% during the week, with August futures up 0.06% on Friday.
The 10‑gram 24‑carat gold price dropped from Rs 1,44,532 to Rs 1,42,860 by Friday.
Higher U.S. Treasury yields and a firmer U.S. dollar reduced safe‑haven demand for gold.
The U.S. Federal Reserve’s unchanged interest‑rate decision briefly lifted bullion before yields rose again.
Analysts warn that persistent inflation and higher oil prices could keep Treasury yields elevated, limiting precious‑metal demand.
- Who
- Investors and analysts
- What
- Gold prices fell 1.16% during the week
- When
- During the week ending Friday
- Where
- India, Mumbai
- Why
- Higher U.S. Treasury yields and a firmer dollar reduced demand
- Gold price (August futures)
- Rs 1,41,599
- Silver price (September futures)
- Rs 2,17,488
- Gold price (10g 24c)
- Rs 1,42,860
- Gold price change
- -1.16%
- U.S. Federal Reserve decision
- unchanged rates