Gold and silver prices climbed in international markets on Monday, October 19, 2026, driven by safe-haven demand and a drop in US Treasury yields. On COMEX, gold futures rose 0.30% to $4,193.60 per ounce, while silver futures gained 0.51% to $57.60 per ounce. Gold reached an intraday high of $4,208.40 per ounce, and silver peaked at $57.655 per ounce. These gains followed a sharp correction in domestic bullion prices last week, with December gold futures on the Multi Commodity Exchange (MCX) falling 2.4% to around ₹1.47 lakh per 10 grams, and silver futures declining 6.4% to approximately ₹2.11 lakh per kg.
The rise in precious metals was supported by safe-haven buying amid geopolitical risks, particularly tensions around the Strait of Hormuz. Concerns over funding requirements for artificial intelligence infrastructure and a sell-off in technology stocks also contributed to market uncertainty. Lower US Treasury yields made gold more attractive as the opportunity cost of holding the non-interest-bearing asset declined. Prithviraj Kothari, managing director of RiddiSiddhi Bullions and president of the India Bullion and Jewellers Association, noted that gold and silver rebounded due to safe-haven buying and short-covering as the US dollar index eased from an 18-month high.
However, inflation remains a key risk, with higher-than-expected US producer price inflation keeping expectations of further Federal Reserve tightening in focus. Interest-rate expectations are crucial for bullion prices, as higher rates can increase the opportunity cost of holding precious metals. Movements in the rupee can also influence domestic bullion prices independently of international rates. Gaurav Garg, head of research at Lemonn, noted that the rupee's appreciation had contributed to the recent decline in domestic gold prices, reducing the landed cost of imported gold.
Investors will be watching developments around the Strait of Hormuz, crude oil prices, movements in the US dollar and Treasury yields, and expectations for Federal Reserve policy. Higher crude oil prices could intensify concerns about energy-driven inflation, potentially complicating the outlook for interest rates. Geopolitical uncertainty could support demand for gold as a safe-haven asset. Economic data, including Chinese economic releases and US housing data, will also be important in shaping expectations for interest rates and economic growth.
Kothari highlighted key technical levels for gold and silver, suggesting that gold could move towards $4,200 per ounce, equivalent to approximately ₹1.51 lakh per 10 grams, if the recovery continues. He noted that silver needs to hold above $56.30 per ounce, or around ₹2.10 lakh per kg, to target $58.50 an ounce. These technical levels are cited by the market expert but are not assured price targets, as bullion prices can remain volatile due to shifting market sentiment.