August 12, 2026 at 08:32 AM 2 min readmarketsFinancial InsightAI Insights
Gold Prices Rise on Geopolitical Tensions; Silver Remains Flat
24K gold prices increased by ₹103 to ₹15490 per gram on August 12, 2026, amid sustained institutional demand.
Market & Sector Overview:
Gold prices in India saw a modest uptick during the session on August 12, 2026. According to Jos Alukkas data, 24K gold rose by ₹103 (+0.67%) to ₹15490 per gram, while 22K and 18K gold were priced at ₹14195 and ₹11614 per gram, respectively. Silver rates, as reported by GoodReturns, remained unchanged at ₹260.0 per gram and ₹260000.0 per kilogram.
Global Cues & Macro Dynamics:
International gold prices are supported by geopolitical tensions involving Iran, the US, and Yemen-aligned Houthis, alongside recent North Korean missile activity. Central bank accumulation remains a key pillar of support, with global central banks purchasing a net 288.9 tonnes of gold in Q2 2026, a 62% year-over-year increase. These factors provide a long-term floor for bullion prices despite fluctuations in the US Dollar Index.
Domestic Drivers & Corporate Highlights:
The Indian Rupee depreciated by 6 paise to 95.42 against the US dollar, a move that typically supports domestic gold prices by increasing import costs. While retail jewelry demand is expected to see seasonal support, industrial silver demand faces headwinds from a projected 19% decline in solar photovoltaic usage due to thrifting, even as the global silver deficit widened to 46.3 million ounces in 2026.
Pulse Intelligence
Context & ImpactContext & Background
- Central banks have averaged 1,000 tonnes of gold accumulation annually over the past four years.
- The global silver market has faced a widening structural deficit for six consecutive years.
Key Consequences
- A weaker Indian Rupee increases the cost of imported gold, maintaining higher domestic price levels.
- Persistent geopolitical friction continues to drive safe-haven capital flows into precious metals.
Market & Economic Impact
Precious metals are currently serving as a hedge against broader equity market volatility and currency depreciation.
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