Gold and Silver Soar on Weaker Dollar and Stable Interest Rate Expectations
Gold and silver prices continued their upward trend on Friday, supported by a weaker US dollar and efforts by the US Treasury Department to keep longer-term yields under control. The dollar was headed for a weekly decline, making dollar-priced commodities more affordable for holders of other currencies.
The MCX silver futures for September 2026 delivery rose Rs 1,915 to Rs 2,45,158 per kg, while gold futures for October 2026 delivery increased by Rs 1,205 to Rs 1,60,630 per 10 grams. In the last three sessions, silver has jumped Rs 13,000 and gold has risen nearly Rs 6,500/10 grams.
Markets are pricing in a 64% probability that the Fed will leave interest rates unchanged in September, while the probability of a rate hike stands at 36%, according to the CME FedWatch Tool. Gold is traditionally viewed as a hedge against economic turmoil and inflation, but higher interest rates can weigh on demand for the non-yielding asset.