18 Aug 2026, 10:44 AM 2 min readmarketsFinancial InsightMarket Pulse
Gold Prices Hold Steady Amid Geopolitical Tensions As Silver Faces Profit-Booking
Gold holds firm at ₹15,595 per gram while silver futures see early profit-booking on the MCX.
Market & Sector Overview:
Gold prices are demonstrating resilience on Tuesday, August 18, 2026, supported by safe-haven demand, while silver is experiencing notable profit-booking in early trade. As of August 17, 2026, 24K gold was trading at ₹15,595 per gram at Jos Alukkas, reflecting a modest gain of ₹23 (+0.15%). Conversely, silver prices remained flat at ₹255.0 per gram, or ₹255,000.0 per kilogram. On the MCX, October gold futures are down 0.38% at ₹1.55 lakh per 10 grams, while September silver contracts have dipped 0.88% to ₹2.35 lakh per kilogram, signaling a cautious start for domestic bullion investors.
Global Cues & Macro Dynamics:
Globally, spot gold is trading below $4,400 an ounce, with COMEX gold at $4,467.70, down 0.13%. The market is reacting to easing U.S. Federal Reserve rate hike expectations, with the probability of a September hike falling to 35%. The U.S. Dollar Index (DXY) is hovering near 99.60, bolstered by safe-haven demand due to the U.S.-Iran conflict. Meanwhile, 30-year U.S. Treasury yields hit a near two-decade high of 5.31%, creating a complex environment for non-yielding assets like gold and silver.
Domestic Drivers & Corporate Highlights:
The Indian Rupee depreciated by 7 paise to 95.68 against the U.S. dollar, pressuring import costs for precious metals. Retail demand in India is shifting toward lightweight, versatile jewelry designs as consumers navigate high price points. Institutional demand remains robust, with central banks globally continuing their record-breaking accumulation of gold, which provides a structural floor for prices despite short-term volatility in the physical and futures markets.
Pulse Intelligence
Context & ImpactContext & Background
- Central banks purchased a record 288.9 tonnes of gold in the second quarter of 2026, marking a 62% year-over-year increase as part of a broader de-dollarization strategy.
- The U.S. Federal Reserve has faced pressure to pause rate hikes following weaker-than-expected July job losses and softer consumer price inflation data.
- Global silver markets have faced six consecutive years of supply deficits, with mine supply contracting faster than industrial demand from the solar photovoltaic sector.
Key Consequences
- Persistent geopolitical tensions in the Strait of Hormuz are likely to keep gold prices elevated as investors seek safe-haven assets during periods of uncertainty.
- A sustained depreciation of the Indian Rupee against the U.S. dollar will likely increase the landed cost of imported gold, potentially dampening retail demand during the upcoming festive season.
- The ongoing 'thrifting' of silver in solar panel manufacturing may lead to increased price volatility for the metal as industrial demand dynamics shift in response to high costs.
Market & Economic Impact
The resilience of gold prices amid currency depreciation and geopolitical risk highlights its continued role as a critical hedge for Indian investors against macroeconomic instability.
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