India's Bullion Market on August 1, 2026
As of August 1, 2026, gold prices across major Indian cities remained elevated, with 24-karat gold trading between ₹1.47 lakh and ₹1.48 lakh per 10 grams. Despite a degree of weakness observed in global bullion markets, domestic prices continued to hover near record levels. Silver, a key companion metal, maintained its position, holding steady at approximately ₹2.35 lakh per kilogram in Delhi.
Global and Domestic Market Dynamics
The Multi Commodity Exchange (MCX) saw gold futures dip on Friday, settling around ₹1,42,600 per 10 grams, while silver futures traded close to ₹2,19,200 per kg. This domestic volatility mirrored trends in international markets, where both spot gold and spot silver experienced a roughly 1% decline, trading near $4,075 per ounce and $58.4 per ounce, respectively.
Several factors are influencing these price movements. Continued geopolitical tensions in West Asia are underpinning demand for safe-haven assets, while a weaker Indian rupee also lends support to domestic bullion prices. Interestingly, the decline in precious metals occurred even as crude oil prices corrected sharply, with US WTI crude falling below $81.50 per barrel and Brent crude slipping below $85 per barrel. Gasoline futures also weakened, contrasting with gains in copper and natural gas futures.
US Federal Reserve's Policy Influence
Market participants are closely monitoring the US Federal Reserve's policy outlook. Following its decision to keep interest rates unchanged this week, persistent inflation concerns and rising energy prices have fueled expectations that policymakers might tighten monetary policy later in the year. Current market pricing suggests an approximately 63% probability of a Fed rate hike in September.
Geopolitical Risks and Safe-Haven Demand
Geopolitical risks, particularly fresh US military strikes on Iranian targets following attacks on American assets in the Middle East, continue to heighten uncertainty. However, analysts note that gold has remained under pressure since the escalation of the US-Iran conflict earlier this year. This is partly due to higher oil prices contributing to inflation expectations and strengthening the US dollar, which in turn limits bullion's upside potential.
Retail Gold and Silver Rates Across Major Cities
Here's a snapshot of 24-karat gold prices (per 10 grams) in key Indian cities on August 1:
- Chennai: ₹1,48,574
- Hyderabad: ₹1,48,574
- Bangalore: ₹1,48,431
- Kolkata: ₹1,48,431
- Delhi: ₹1,47,931
In Delhi specifically, 24-karat gold was priced at ₹14,023 per gram and ₹1,40,230 per 10 grams. For those interested in jewelry, 22-karat gold, known for its greater durability, stood at ₹13,355 per gram and ₹1,33,550 per 10 grams.
Delhi's silver market saw prices hold steady on August 1 at ₹235 per gram, translating to ₹2,350 per 10 grams, ₹23,500 per 100 grams, and ₹2,35,000 per kilogram. Over the past ten days, silver has seen a modest correction, softening from ₹2,450 per 10 grams on July 23 to its current level.
Outlook for Bullion Prices
Looking ahead, analysts anticipate that bullion prices will remain highly sensitive to upcoming US inflation data, further commentary from the Federal Reserve, movements in the US dollar, and any new geopolitical developments emerging from West Asia.