Gold prices continued its uptrend and crossed ₹1,60,000 per 10 gram-mark as dollar weakened against key currencies in the global markets and volatile treasury yields in the US.Opening on the firm trend, gold prices gained by ₹3,540 per 10 grams to hit a high of ₹1,60,620 per 10 grams against the previous close of ₹1,57,080, according to the India Bullion and Jewellers Association of India data.Silver prices also rallied to ₹2,46,630 per kg against the previous close of ₹2,37,766, it added.MCX gold prices jumped over 1.3 per cent to cross the ₹1.61 lakh per 10 grams mark, while MCX silver prices surged 1.8 per cent to move above ₹2.47 lakh per kg.In fact, MCX gold has gained over ₹7,100 per 10 grams, or around 5 per cent in three sessions. MCX silver, meanwhile, has risen by more than ₹15,000 per kg, marking a gain of nearly 7 per cent.Gold surged one per cent to $4,620 an ounce on Comex, hitting its highest level since May, when prices hovered just $4,659 per ounce. Silver has also strengthened, reflecting renewed buying interest across the precious-metals complex.The rally in gold and silver prices were driven by a combination of factors including weak US dollar, changing US bond yields, geopolitical tensions and growing concerns over the US fiscal position.The US debt has crossed $40 trillion, while the Treasury has announced larger long-duration bond buybacks of at least $4 billion per operation, which initially pushed yields and the dollar lower and supported precious metals.This apart, the simmering US-Iran tensions have strengthened safe-haven demand for precious metals. Central banks have purchased nearly 289 tonne of gold in the second quarter of 2026, up 62 per cent from a year earlier, highlighting the strength of underlying demand for the precious metal.Manav Modi, Commodities Analyst, Motilal Oswal Financial Services, gold prices traded near their highest levels in more than two and a half months as investors balanced support from lower bond yields against renewed concerns over inflation and rising fiscal risks.“However, the relief proved temporary, with the 30-year Treasury yield rebounding as concerns resurfaced over the sustainability of US government finances after total federal debt surpassed $40 trillion,” Modi said.Kavita Chacko, Research Head, India, World Gold Council said domestic gold prices remain below import parity, indicating local supply availability.Market feedback suggests that the exchange of old gold for new jewellery has increased market supply and kept prices at a discount to the landed cost, she said.While discounts narrowed from about $100 an ounce in mid-May to about $45 an ounce in mid-August, they remained above July’s average $34 an ounce, she added.Published on August 21, 2026