The Indian stock market witnessed heavy selling pressure today. However, gold and silver prices recorded a noticeable rise on the Multi Commodity Exchange (MCX). Safe-haven demand increased after global economic uncertainty and political moves in the United States.
Investors shifted focus to bullion as equity markets struggled. The weakness of the US dollar further supported gold and silver rates.
Trump Fires Federal Reserve Governor Lisa Cook
A major global trigger behind the rise in precious metals came from the United States. President Donald Trump removed Federal Reserve Governor Lisa Cook over alleged misconduct in mortgage lending practices.
Her sudden dismissal shook investor confidence and raised doubts about policy stability in the Federal Reserve. The US dollar index slipped by 0.30 percent after the news. Analysts said Trump may appoint a softer policymaker as replacement, one who could push for interest rate cuts.
This expectation of lower interest rates fueled demand for gold and silver. Lower rates reduce the opportunity cost of holding bullion, making it more attractive for investors.
Tariffs on Indian Goods Also Influence Bullion Sentiment
Adding to the global tension, an additional 25 percent tariff on Indian goods will come into effect from tomorrow. This trade development forced many investors to seek safer assets before markets face the next wave of volatility.
Experts noted that geopolitical tensions, combined with trade tariffs, make bullion a preferred hedge. Demand for gold and silver surged both on international exchanges and within the Indian bullion market.
MCX Gold and Silver Price Today
On the Multi Commodity Exchange, gold futures for October 3 expiry gained 0.27 percent. The yellow metal traded at Rs 100,897 per 10 grams. Silver futures for September 5 expiry rose 0.31 percent, reaching Rs 116,314 per kilogram.
The steady climb in both contracts indicated strong domestic buying interest. Traders highlighted that safe-haven demand was the key driver despite equity weakness.
Bullion Market Rates in India
According to the Indian Bullion and Jewellers Association, 24-carat gold was selling at Rs 100,049 per 10 grams today. Meanwhile, 22-carat gold was priced at Rs 98,080 per 10 grams. Silver traded at Rs 116,133 per kilogram in the bullion market.
The surge in rates reflected not only global triggers but also domestic festive season buying. Retail demand from jewelers remained consistent, further pushing prices higher.
City-Wise Gold and Silver Prices
Bullion rates varied across major cities of India on 26 August 2025.
In Delhi, 24-carat gold stood at Rs 100,980 per 10 grams, while 22-carat gold was priced at Rs 92,565. Silver rates were Rs 116,830 per kilogram.
In Mumbai, 24-carat gold traded at Rs 101,160 and 22-carat gold at Rs 92,730. Silver prices reached Rs 117,030 per kilogram.
In Jaipur, 24-carat gold was available at Rs 101,140 and 22-carat gold at Rs 92,712. Silver was priced at Rs 117,010 per kilogram.
In Chennai, rates were slightly higher, with 24-carat gold at Rs 101,450 and 22-carat gold at Rs 92,996. Silver in the southern city touched Rs 117,370 per kilogram.
Why Precious Metals Are Rising Despite Market Weakness
Analysts explained that safe-haven demand is the primary reason behind the surge. Investors often move towards bullion when uncertainty rises in equities, currencies, or politics.
The dismissal of Lisa Cook created uncertainty in the Federal Reserve’s policy stance. The weakening dollar added fuel to gold’s rally, as a cheaper dollar makes bullion more affordable for holders of other currencies.
At the same time, tariffs on Indian exports raised concerns about trade disruptions. This combination of factors pushed investors towards assets perceived as safe.
Experts’ Views on Gold Outlook
Market experts believe gold will remain strong in the near term. If Trump appoints a softer governor at the Federal Reserve, chances of interest rate cuts will increase. Lower rates are historically supportive of gold.
Domestic demand in India is also expected to rise during the festive and wedding season. Jewelers said consumers often buy more gold during this period, which may keep prices elevated.
Silver too is expected to remain firm. Apart from its safe-haven demand, silver has strong industrial usage. Any recovery in global manufacturing may further support silver prices.
Global Market Influence on Indian Bullion
The international bullion market has always influenced Indian prices. In recent days, spot gold and silver prices have strengthened globally due to the weak dollar and rate cut expectations.
Indian markets closely followed this global trend. Traders said domestic fluctuations also depend on the rupee-dollar exchange rate. A weaker rupee usually makes imported gold costlier, pushing domestic rates higher.
Festive Season Adds to Bullion Demand
As September approaches, India enters a high-demand season for gold. Festivals and weddings usually increase physical buying. Jewelers in cities like Delhi, Mumbai, and Chennai reported stronger demand compared to previous weeks.
This seasonal buying is expected to continue, further supporting the bullish trend in precious metals.
What Investors Should Watch
Investors in India are closely tracking three factors: global interest rate policies, the movement of the US dollar, and domestic demand during festivals.
If the Federal Reserve moves towards interest rate cuts, gold may gain more momentum. A weaker dollar is also supportive of prices. At the same time, any easing in trade tensions could bring volatility.
Experts suggest investors should monitor MCX gold and silver contracts for near-term trends. Long-term investors are advised to hold bullion as part of a diversified portfolio.
Possible Appointment of New Federal Reserve Governor
Following the removal of Lisa Cook, discussions have begun over her replacement. Market observers expect Trump to appoint someone more supportive of his policies.
Analysts said a dovish appointee could accelerate calls for lower interest rates. This would likely extend the bullish phase in gold and silver. Until clarity emerges, markets may continue to see volatility, but bullion is expected to benefit.
On 26 August 2025, gold and silver prices showed strength in Indian markets despite a falling stock market. The weakening dollar, Trump’s sudden move against Lisa Cook, and upcoming trade tariffs all pushed investors towards safe-haven assets.
