The yellow metal turned bullish after the US Treasury announced that it would double buyback operations for longer-dated bonds from $2 billion to $4 billion per operation from September 9
Gold prices surged sharply by ₹3,212 per 10 gram, or nearly 2 per cent, on Thursday, climbing to ₹1,57,080 from ₹ 1,53,868 in the previous session, buoyed by a strong rally in international markets. The yellow metal turned bullish after the US Treasury announced that it would double buyback operations for longer-dated bonds from $2 billion to $4 billion per operation from September 9. The move is expected to provide liquidity support to the long end of the bond market, pushing the 30-year US Treasury yield down from near two-decade highs to around 5.19 per cent and boosting investor interest in gold.In the domestic market, gold opened higher at ₹1,57,387 per 10 grams amid strong buying interest, according to data from the India Bullion and Jewellers Association (IBJA). Silver also witnessed a sharp rally, rising by ₹8,541 per kg to ₹2,37,766 from ₹2,29,225 in the previous session.On the Multi Commodity Exchange (MCX), gold contracts for October delivery gained ₹264 to trade at ₹1,58,260 per 10 grams.global pricesGlobally, spot gold jumped 4 per cent to $4,488 an ounce after touching an intra-day high of $4,499, its highest level since June 4. US gold futures settled 3 per cent higher at $4,545 an ounce. The surge comes at a crucial time for the jewellery industry, which is gearing up for the festive and wedding season. However, the sharp rise in prices could weigh on physical demand, which has already been impacted by recent volatility.Prithviraj Kothari, President of the India Bullion and Jewellers Association, said the US Treasury’s decision to increase long-dated bond buybacks could reduce the opportunity cost of holding non-yielding assets such as gold, providing a strong tailwind for prices.“Gold can test the $4,550-$4,600 range if pressure on the dollar persists,” he said. At the same time, Kothari cautioned that rising prices typically temper physical demand during the festival season, as consumers often postpone purchases or opt for lighter-weight jewellery when rates rise sharply.festival demandRajesh Rokde, Chairman of the All India Gem and Jewellery Domestic Council (GJC), offered a more optimistic view, saying higher prices do not necessarily translate into weaker festival demand in India. “Gold holds deep cultural and emotional significance, especially during festivals and weddings. Higher prices enhance the value of existing holdings and often encourage consumers to exchange old jewellery for newer designs,” he said.According to Rokde, buyers are increasingly likely to opt for lighter-weight ornaments, lower-carat jewellery and exchange-led purchases rather than completely defer buying. For jewellers, elevated gold prices could help support the overall value of retail sales, even if sales volumes remain under pressure during the festival season, he added.Published on August 20, 2026
