On July 20, 2026, gold rates in India increased by Rs 1,200 to Rs 1,700, reflecting a broader uptrend in the global bullion market. Nonetheless, these gains are constrained by high crude oil prices, which raise the likelihood of an earlier-than-anticipated rate hike. In a parallel development, silver rates in India experienced a notable increase, with both MCX silver and spot silver rising by 1-2% on Monday. The probability of a rate hike has risen to 53%, up from the previous 47%, in the forthcoming policy decision by the US Federal Reserve. On the global front, spot gold has experienced a slight increase, while spot silver has shown stronger performance with an approximate 2% rise. Meanwhile, crude oil earlier gained by 2% to 3% and traded above $90 per barrel. Additionally, the US dollar exhibits strength, hovering around the 101 level.
Gold is currently exhibiting indications of short covering from lower levels; however, the overarching trend continues to reflect volatility and weakness until more robust global signals materialise. Market participants will persist in monitoring developments in West Asia, the US dollar, and forthcoming US economic data for new direction, according to Jateen Trivedi. 24 carat gold price increased by Rs 1,700 for 100 grams, reaching Rs 14,34,600, while it rose by Rs 170 for 10 grams, totalling Rs 1,43,460. Additionally, 8 grams and 1 gram of gold experienced an increase of Rs 136 and Rs 17, bringing their prices to Rs 1,14,768 and Rs 14,346, respectively. Furthermore, the price of 22 carat gold has increased by Rs 1,500 to reach Rs 13.15 lakh per 100 grams. It is also higher by Rs 150, now standing at Rs 1,31,500 per 10 grams, with a gain of Rs 120 to Rs 1,05,200 per 8 grams, and an increase of Rs 15 to Rs 13,150.
Under 18 carat, the price of 100 grams of gold increased by Rs 1,200, reaching Rs 10,75,900. Meanwhile, the price for 10 grams of gold rose by Rs 120, now at Rs 1,07,590, and 8 grams of gold saw an increase of Rs 96, bringing it to Rs 86,072. Lastly, 1 gram of gold has increased by Rs 12, now priced at Rs 10,759. Geopolitical risks have escalated following recent Iranian strikes on US facilities in the Middle East, which came in response to ongoing US attacks on Iranian military targets and interruptions to traffic in the Strait of Hormuz. Fed officials also maintained a hawkish tone, with Lorie Logan backing another hike and Philip Jefferson signalling support for tighter policy if inflation stays firm, according to Aamir Makda.
While softer US inflation data eliminated the possibility of a July hike, market sentiment remains divided regarding September. In India, Gold ETF inflows experienced a resurgence, reaching Rs 3,443 crore in June, buoyed by price corrections and a revival of investor interest. However, gold imports saw a decline for the second consecutive month, according to the analyst. This week, markets will concentrate on crucial data, including PMIs, the CB leading index, regional Fed surveys, and the ECB decision for new insights into policy direction. Traders ought to monitor significant US economic indicators, including New home sales and Unemployment claims, set to be published this week.