Gold Prices Steady Near Three-Month High in India Amidst Global Cues, Silver Sees Mixed Trend

Gold prices across India have demonstrated remarkable strength, holding steady near a three-month high. In Delhi, gold of 99.9% purity climbed to ₹1,67,100 per 10 grams earlier this week, extending its gains for a fourth consecutive session. This upward trajectory is largely attributed to a weakening US dollar and renewed concerns regarding US fiscal conditions, which have enhanced gold's appeal as a safe-haven asset. International spot gold prices have also hovered near recent peaks, reflecting global investor sentiment. However, the precious metal did see a slight dip internationally as investors awaited crucial US inflation data, particularly the Personal Consumption Expenditures (PCE) price index, which is a key indicator for the Federal Reserve's interest rate decisions.

In contrast, silver prices have shown a mixed performance. While they initially rose due to anticipation of US inflation data, domestic prices in Delhi declined by ₹3,500 to ₹2,50,000 per kg as traders engaged in profit booking following a three-session rally. Similarly, in international markets, spot silver saw a retreat, marking its second consecutive session of losses. Despite these fluctuations, the broader outlook for precious metals remains positive, with analysts suggesting gold could reach ₹1,85,000 to ₹2,05,000 and silver ₹2,65,000 to ₹2,68,000 per kilogram in the next year and a half, driven by strong safe-haven demand and inflationary pressures. Jewellery prices in Chennai also remained stable on August 26, 2026, with 22-carat gold at ₹1,20,080 per sovereign. The market's future movement will largely depend on forthcoming inflation data and central bank policies.