1 week ago
Gold and Silver Surge as Weak Dollar Fuels Bullion Rally
Gold and silver became more expensive in New Delhi over two days.
Gold reached Rs 1,63,500 for 10 grams on Friday.
Silver reached Rs 2,50,000 for one kilogram.
Both prices rose for a second day in a row.
A weaker US dollar made precious metals more attractive to investors.
Lower US Treasury bond yields also helped support prices.
The US Treasury doubled planned long-term bond buybacks from USD 2 billion to USD 4 billion.
Global gold and silver prices fell on Thursday but rose strongly on Friday.
Investors were also watching tensions involving the United States and Iran and upcoming US economic data.
In New Delhi, gold rose Rs 4,300 on August 20 and Rs 1,200 on August 21, reaching Rs 1,63,500 per 10 grams.
Silver climbed Rs 10,000 on Thursday and Rs 5,000 on Friday to reach Rs 2,50,000 per kilogram.
Friday’s prices marked more than three-month highs for gold and a 15-week high for silver.
Analysts attributed the rally to a weaker US dollar, falling Treasury yields, strong investment demand, and volatile currency and bond markets.
International bullion prices rallied on Friday, although they had declined on Thursday amid higher oil prices and new US sanctions on Iran.
- Who
- Gold and silver traders and investors, with market commentary from analysts at HDFC Securities, Mirae Asset Sharekhan, and Lemonn Markets Desk.
- What
- Gold and silver prices rose sharply in New Delhi across Thursday and Friday, with gold reaching Rs 1,63,500 per 10 grams and silver Rs 2,50,000 per kilogram.
- Where
- New Delhi, India, with related movements in international bullion markets.
- When
- Thursday and Friday, August 20-21, 2026.
- Why
- A weaker US dollar, lower longer-term US Treasury yields, strong investment demand, and currency and bond-market volatility supported bullion prices. Oil prices, Iran-related sanctions, and expectations for US economic data also influenced trading.
Supportive Market Factors
Risks and Counterarguments
Treasury bond buybacks
Supportive Market Factors
Analysts said the US Treasury’s decision to double long-term debt buybacks helped push the dollar and bond yields lower, supporting gold.
Risks and Counterarguments
Investors questioned whether the Treasury’s measures would provide lasting relief, and yields later stabilised.
Iran sanctions
Supportive Market Factors
The Trump administration said it would announce its harshest economic sanctions on Iran, adding geopolitical uncertainty that can increase interest in precious metals.
Risks and Counterarguments
Tehran dismissed the sanctions as a continuation of failed tactics and criticised the United States over rising debt and record interest payments.
Oil-price impact
Supportive Market Factors
A slight retreat in overseas oil prices on Friday provided additional support to bullion, according to an analyst.
Risks and Counterarguments
On Thursday, oil prices rose more than 2 per cent after the sanctions announcement, contributing to pressure on global spot gold prices.
Key facts
- Gold price on Friday
- Rs 1,63,500 per 10 grams, inclusive of taxes
- Gold two-day move
- Gold rose Rs 4,300 on Thursday and Rs 1,200 on Friday
- Silver price on Friday
- Rs 2,50,000 per kilogram, inclusive of taxes
- Silver two-day move
- Silver gained Rs 15,000 over the two sessions
- Friday global gold
- USD 4,600.91 per ounce, up USD 81.58 or 2 per cent
- Friday global silver
- USD 69.87 per ounce, up nearly 3 per cent
- Treasury buybacks
- Planned off-the-run securities buybacks increased from USD 2 billion to USD 4 billion for the August quarter
- Thursday global prices
- Spot gold fell 1.47 per cent to USD 4,456.72 per ounce and silver declined nearly 2 per cent to USD 65.82
Quotes
Saumil Gandhi
Senior Analyst – Commodities at HDFC Securities
“Gold extended its rally on Friday’s session and is heading for its third consecutive weekly gain, while silver also remained strong, supported by a weaker US dollar and falling longer-term Treasury bond yields”
theprint.in
“"Gold remained near its highest level since early June, supported by lower US Treasury yields and a weaker dollar after the US Treasury increased long-dated bond buybacks."”
freepressjournal.in
Sources
Gold, silver scale over 3-month highs as weak US dollar fuels safe-haven rush
Bullion fires up: Gold hits Rs 1.62 lakh, silver jumps Rs 10,000
Gold Hits 3-Month High At ₹1.62 Lakh Per 10 Grams; Silver Surges ₹10,000 To ₹2.45 Lakh Per Kg
Gold Jumps ₹1,200 To ₹1,63,500, Silver Surges ₹5,000 To ₹2.50 Lakh
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