MCX gold futures crossed the ₹1.52 lakh mark per 10 grams on August 10, 2026, while silver climbed to ₹2.34 lakh per kilogram. This upward trend is driven by safe-haven demand amidst geopolitical tensions near the Strait of Hormuz. Investors are now focused on upcoming US inflation data, which will likely influence the Federal Reserve's interest rate path and future metal prices.
Gold and silver prices moved higher on the Multi Commodity Exchange (MCX) on Monday, August 10, 2026. October gold futures crossed the ₹1.52 lakh per 10-gram level, while September silver futures reached approximately ₹2.34 lakh per kilogram, marking a daily gain of 1.14%.
This domestic rally occurred even as international gold prices showed some weakness, with spot gold slipping slightly. This divergence between local and global markets highlights that domestic factors and currency movements are currently playing a significant role in price discovery for Indian investors.
The primary driver for the current move is geopolitical uncertainty, specifically concerns regarding the Strait of Hormuz. When global instability increases, gold is often bought as a safe-haven asset, meaning investors move money into gold to protect their wealth during periods of trouble. However, this situation presents a complex scenario for the market. While the current tension boosts gold, it also risks driving up oil prices. Sustained higher energy costs would likely increase global inflation, which could complicate the monetary policy decisions of the US Federal Reserve.
Investors are now preparing for upcoming US economic reports, specifically the Consumer Price Index (CPI) due on Wednesday and the Producer Price Index (PPI) on Thursday. These reports will be critical as they provide a clearer picture of whether inflation is cooling down or remaining stubborn. If these reports show that inflation is higher than expected, the Federal Reserve might maintain interest rates at a high level for a longer period. This is a potential risk for gold, as higher interest rates make gold less attractive compared to bonds or other assets that pay regular interest.
Another factor to watch is the movement of the US dollar. A stronger dollar typically makes gold more expensive for buyers using other currencies, which can limit the price momentum of precious metals. The market remains sensitive to these shifting variables, and price volatility is expected to continue until there is more clarity on both the geopolitical front and the future path of US interest rates.