Gold prices have surged about 17 percent from their June 2026 low in the domestic market. The yellow metal now trades near Rs 1.62 lakh per 10 grams on MCX. Strong central bank buying and US rate cut hopes are driving the rally.
Why Gold Prices Are Rising
Gold fell to around Rs 1.40 lakh per 10 grams in June 2026. It has now recovered to about Rs 1,62,500 per 10 grams. COMEX gold is up nearly 16 percent from its June low of about $3,942 per ounce.
Sugandha Sachdeva, founder of SS WealthStreet, says many central banks are buying gold. Geopolitical tensions, rising government debt and economic uncertainty are pushing them toward the metal. Investors are also returning to gold ETFs, signaling renewed safe-haven demand.
US Bond Market Turmoil Supports Gold
The 30-year US Treasury yield has climbed to nearly 5.33 percent. Heavy selling in long-dated bonds and fiscal deficit worries are behind the move. Rising yields usually pressure gold. But risk fears are making investors buy it as an alternative safe asset.
Fed Rate Cut Hopes in Focus
All eyes are on the Fed chair’s upcoming Jackson Hole speech. A dovish tone could strengthen rate cut expectations and weaken the dollar. That would give gold another push higher. A hawkish stance could put some pressure on the rally.
Key Levels to Watch for Gold
In the domestic market, Rs 1,54,000 per 10 grams is important support. A sustained breakout above Rs 1,62,700 could take gold to Rs 1.70 lakh to Rs 1.72 lakh per 10 grams in the coming months. Globally, $4,620 to $4,630 per ounce is key resistance. A decisive move above it could push prices toward $4,900.
The rupee’s movement also matters for gold. A range of 95.75 to 95.80 is crucial, with support seen near 95.6 to 95.5. These are expert estimates, not guaranteed forecasts. Investors should weigh market risks and their own capacity before taking positions.
