Gold Prices Soar as Strait of Hormuz Deal Hopes Emerge

Gold prices surged on August 5, 2026, as major jewellery brands increased their rates for 22-karat gold. According to Prithviraj Kothari, managing director at RiddiSiddhi Bullions Ltd., and president of the Indian Bullion and Jewellers Association (IBJA), the rise in prices was driven by reports of a possible deal to reopen the Strait of Hormuz, easing inflation concerns and reducing near-term Fed rate-hike expectations.

The IBJA's indicative retail selling rates for August 5, 2026, showed that fine gold was priced at Rs 14,458 per gram, while 22 KT Gold stood at Rs 14,208 per gram. The prices of other types of gold and silver also rose significantly compared to the previous day.

Kothari predicted that if gold sustains above $4,200 (Rs 1,46,000), it may fuel a rally toward $4,500 (Rs 1,55,000). Similarly, for Silver, a decisive push above $63 (Rs 2,30,000) could drive prices toward $70-71 (Rs 2,50,000-2,55,000).