Gold Price Rises as US Dollar Weakens Amid Bond Buyback Announcement
The price of gold rose on August 20, 2026, as the US dollar weakened and US Treasury yields fell following an announcement by the US Treasury to double its bond buyback to $4 billion. This move reduced long-end Treasury yields, making non-yielding assets like gold more attractive.
MCX Gold October futures traded at Rs 1,58,084 per 10 grams, up 0.06% from the previous close. Silver September contracts were trading at Rs 2,39,338 per kg, up 1.08%. The dollar index weakened, which is a positive sign for gold prices, as it makes gold more affordable for international buyers.
Silver is outperforming gold today due to its dual nature as both a precious and industrial metal. Improving industrial demand expectations, particularly from the solar panel and electric vehicle sectors, add an extra premium to silver's move.