Gold futures on the MCX climbed to ₹1,58,260 per 10 grams on August 20, 2026. The increase followed a decline in US Treasury yields after the US government expanded its bond buyback operations. While lower yields supported prices, investors should monitor potential US interest rate hikes and persistent inflation, which could limit further gains.
Gold futures on the Multi Commodity Exchange (MCX) rose by ₹264 to reach ₹1,58,260 per 10 grams on Thursday, August 20, 2026. This price increase followed a shift in global financial conditions, specifically in the United States, which often influences gold prices in India.
The primary driver behind this move was a decision by the US Treasury Department to increase its bond buyback operations. By expanding these operations for long-term bonds to $4 billion, the US government effectively worked to lower borrowing costs for the economy. As a result, the 30-year US Treasury yield fell to approximately 5.19% from recent near-two-decade highs. Lower bond yields generally support gold because investors often shift capital toward precious metals when government bonds offer less attractive returns.
While this price rise offers support to gold holders, several factors may limit further gains. The Federal Reserve's July meeting minutes, released recently, showed that central bank officials are still worried about high inflation. Some officials indicated that they might raise interest rates again if price levels do not cool down. Gold typically struggles when interest rates are high because the metal does not earn interest for its holders.
Additionally, global economic risks continue to influence the market. Elevated crude oil prices and ongoing geopolitical tensions in the Middle East create an uncertain environment for commodity prices. While geopolitical fears often increase demand for gold as a safe-haven asset, they also contribute to global inflation, which central banks are actively trying to control. In international markets, Comex gold futures remained steady at $4,546 per ounce.
Investors tracking the bullion market will likely watch upcoming data reports, such as US weekly jobless claims and manufacturing indices, to gauge how the US economy is reacting to current interest rate policies.