Rupee Weakening Boosts Gold, Silver Prices in India

Gold and silver prices rose on the Multi Commodity Exchange (MCX) in India on August 17, tracking firm global trends due to a softer US dollar and changing Federal Reserve interest-rate expectations.

The price of gold futures for October delivery increased by ₹676, or 0.44%, to ₹1.55 lakh per 10 grams, while silver futures for September delivery gained ₹2,270, or 0.96%, to ₹2.38 lakh per kg.

Darshan Desai, CEO of Aspect Bullion & Refinery, stated that gold and silver are entering the new week on a firm note, supported by a softer US dollar, shifting rate expectations, and continued safe-haven demand.

The rupee weakened to around ₹95.59 per dollar in early trade, which can push up the landed cost of internationally priced commodities such as gold and silver, providing additional support to domestic prices.