Gold prices extended their rally for a seventh day, rising Rs 2,600 to reach Rs 1.59 lakh per 10 grams on August 12, 2026. Silver prices also climbed Rs 4,000 to hit Rs 2.46 lakh per kg. The surge is driven by geopolitical tensions in West Asia and safe-haven buying. Investors are now awaiting US inflation data to gauge the next move in Federal Reserve policy.
Gold and silver prices in India continued to climb on August 12, 2026, extending their winning streak to a seventh consecutive session. Gold prices added Rs 2,600 per 10 grams, taking the cost to Rs 1,59,800. Silver followed the same upward trend, with prices increasing by Rs 4,000 to reach Rs 2,46,000 per kilogram in the national capital.
This steady increase in the price of precious metals is primarily fueled by global factors. Investors are currently favoring gold as a safe-haven asset due to ongoing geopolitical tensions in West Asia. Furthermore, a decline in US Treasury bond yields and a steady dollar have created a favorable environment for precious metals, which do not generate regular interest payments for holders.
While the price trend has been positive, investors are now exercising caution. The immediate focus for the markets is the upcoming US inflation data. Analysts suggest that if this data reveals persistent price pressures, it could influence the US Federal Reserve to maintain a strict stance on interest rates. High interest rates generally reduce the appeal of non-yielding assets like gold for global investors.
After a seven-day rally, there is also the standard risk of profit-taking. When prices rise rapidly over a short period, some investors may choose to sell their holdings to lock in their gains. This can lead to temporary price corrections. The next important update for those tracking these commodities will be the US inflation figures, which will provide clues on whether this upward momentum can be sustained or if the market is due for a cooldown.