Sunday, August 16, 2026 is a very special day for people who are planning to buy gold and silver. The prices of both the precious metals in the Indian domestic market currently remain at strong levels without any major changes.

On the other hand, due to the movement of the US dollar in the international market, expectations of changes in interest rates and global tensions, there is constant pressure and movement on the prices of gold and silver. According to the latest data, gold in India remains at around ₹ 1.45 lakh per 10 grams and silver at around ₹ 2.23 lakh per kg.

But the real story of the market is not limited to today's rates only. The biggest question arising is that what will be the trend of gold and silver in the coming days and will there be another big jump in prices from here?

What level did the price of gold reach today?

On August 16, gold prices appeared almost stable in the domestic market. According to market reports, the average gold price stood at around ₹1,45,165 per 10 grams, while gold futures on MCX (Multi Commodity Exchange) were trading at ₹1.45 lakh per 10 grams, up by about 0.60 percent.

If we look at the cities, there is a slight difference in the rates. In Delhi, the price of 24 carat gold was around ₹ 1,53,030 per 10 grams and the price of 22 carat gold was around ₹ 1,40,290 per 10 grams. Whereas in Mumbai and Kolkata, 24 carat gold was recorded at around ₹ 1,52,880 per 10 grams and 22 carat gold was recorded at ₹ 1,40,140 per 10 grams.

Keep in mind that when buying jewellery, the final bill rate is higher due to the addition of making charges, GST and other taxes.

The shine of silver also remains intact in the market

Silver is also not lagging behind in the race with gold and is attracting full attention of investors. On August 16, silver futures on MCX were trading 0.99 per cent higher at around ₹2.23 lakh per kg. Its average price in the domestic market also remained around this.

Talking about different cities, silver was recorded at around ₹ 2.67 lakh per kg in Delhi, ₹ 2.70 lakh in Mumbai and around ₹ 2.73 lakh per kg in Chennai.

The reason for this rise in silver is not only investment but also its huge industrial demand. Due to its large scale use in solar panels, electronics and automobile sectors, every ups and downs in the global economy has a direct impact on silver.

News from America changed Gold's mood

The biggest reason behind the recent rise in gold is America's economic policies.

According to a Reuters report, the weak US dollar and new inflation data in the US have confirmed the expectation that the US Federal Reserve (US Fed) may hold back from raising interest rates in its upcoming meeting. For this reason, on August 14, spot gold in the international market jumped 0.7 percent to reach a record level of $ 4,379.95 an ounce.

Actually, there is no direct interest on gold. When banks keep interest rates high, people prefer to put money in safe places like bonds. But as soon as there is a possibility of interest rate cuts, the demand for gold suddenly increases. This is why the eyes of investors all over the world are fixed on the next step of the US Fed.

When the dollar fell, gold got huge support

Internationally, gold is traded in US dollars. In such a situation, whenever the dollar index falls, gold becomes cheaper for buyers with currencies from other countries.

On August 14, a decline of about 0.3 percent was recorded in the US dollar index, which provided additional support to gold and strengthened its prices. If the dollar remains weak in the coming days and interest rates in America fall, then gold prices may go up further.

This is a big threat in the way of gold's rise

On one hand, the cut in interest rates is good news for gold, on the other hand, rising prices of crude oil can become an alarm bell for it.

There is turmoil in the crude oil market due to the ongoing tension in the Middle East and disputes to the Strait of Hormuz. If crude oil prices rise too much, it could cause inflation to rise again around the world. In such a situation, central banks will be forced to keep interest rates high for a long time, which can prove harmful for gold.

That is, at present the gold market is caught between two opposite forces – on one hand, the expectation of interest rate cut and weak dollar, and on the other hand, the fear of inflation due to the rise in crude oil.

The game of gold demand and discount in India

India is the second largest consumer of gold in the world. There is always a demand for gold in India for weddings, festivals and safe investment.

However, due to this unexpected surge in prices, the behavior of common buyers has changed slightly. Instead of buying heavy jewellery, many people are turning to options like light weight jewelery or digital gold.

Interestingly, despite the boom in the international market, a discount has been seen on gold in India. According to a Reuters report on August 14, the discount of gold in India had reached its highest level in two months.

A big relief news from Andhra Pradesh

Amid rising gold prices, a very positive news has come out from Andhra Pradesh. The state government is working on rapidly increasing the production of gold and important minerals.

According to reports, the Andhra Pradesh government is aiming to take gold production in the state on a large scale in the coming years. Officials claim that the state's 'Swarangiri mine' is expected to produce around 1,000 kg of gold annually by next year, which is planned to be further increased to more than 2,000 kg.

If this project is successful, there will be a big increase in India's domestic gold production and our dependence on importing gold from abroad can reduce.

Will gold become more expensive in the coming days?

Looking at the current indications, there is a possibility of further rise in gold price. But experts believe that everything will depend on what decision the US Federal Reserve takes regarding interest rates and the condition of the dollar.

If interest rates in the US soften, the dollar remains weak and international tensions persist, gold prices could set new records. On the contrary, if crude oil becomes more expensive and interest rates remain high, then selling and profit booking in gold may be seen.

Why may volatility increase in silver?

Silver is considered a more volatile metal than gold. The reason for this is that silver rates are directly linked to investment as well as demand from factories and industries.

If industrial manufacturing picks up globally and orders from solar and electronics sectors increase, then silver prices will increase further. But if there is an economic slowdown, its demand may be affected. On August 14, spot silver in the international market increased by 0.7 percent to $ 64.88 an ounce.

What should common investors and buyers do?

Gold and silver have always been considered the safest investments in times of crisis, but at the current record highs, common people should avoid taking major decisions in a hurry.

If you are going to buy jewellery, don't just look at the price of gold. Understand the making charges, GST (3%) and future buyback terms from the jewelers.

Those who want to buy gold for investment purposes, instead of investing all the money at once, they should adopt the strategy of investing little by little in installments or through SIP.

What's going to happen next?

Overall, both gold and silver are currently standing at a very sensitive point. America's interest rate policy, dollar index, crude oil rates and Middle East tensions will decide the new direction of the market in the coming days.

Indian markets may have appeared calm on August 16, but indications from the international markets suggest that the real stir has begun. Gold is firmly standing near two-month high and silver is also shining.

Now it remains to be seen where the market's next big move will happen—a new all-time high or a big decline!