Gold rates in India started this week's trading session with a bang. On August 4th, the 24-carat gold price touched the Rs 1,01,400 mark, which is shy of Rs 930 from hitting its record high levels. Meanwhile, the MCX gold price crossed the Rs 1 lakh mark in 10 grams. On August 5th, gold prices may experience volatility, with the focus shifting towards the RBI's policy outcomes and US manufacturing data.
The 10-gram gold price stood at Rs 1,01,400 in 24 carat, at Rs 92,950 in 22 carat, and at Rs 76,050 in 18 carat. The cheapest gold price in India is currently at Rs 10,140 per gram for 24 karat gold, Rs 9,295 per gram for 22 karat gold and at Rs 7,605 per gram for 18 karat gold (also called 999 gold).
So far, in the first four days of August, gold prices surged by at least 1.6% across its carats in India. But now they are inching closer to hitting a new all-time high. For instance, the 24-carat gold price is just Rs 930 away from hitting its record of Rs 1,02,330, which was touched on July 23, 2025.
MCX Gold, Silver Prices:
MCX gold price with October 2025 expiry, stood at Rs 1,01,225 per 10 grams, up by Rs 21 after the closing bell on August 4th. This bullion is also nearing its record high of Rs 1,01,543.
Meanwhile, the MCX silver price with September expiry also closed on a positive note at Rs 1,12,258 per 1kg, up by Rs 22 on August 4th. Silver is also nearing its peak of Rs 1,16,641 per 1kg.
"Gold prices traded very strong with a sharp rise..., driven by a weak rupee and disappointing U.S. Non-Farm Payroll data on Friday. The weak labor data supported Comex gold, which climbed to $3355, lifting MCX gold sharply from lows of Rs 98,250. Tariff-related concerns and rupee depreciation added to the upside momentum," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.
Gold Prices In India Outlook On August 5:
According to Trivedi, looking ahead, focus shifts to the upcoming RBI policy and U.S. manufacturing data. Gold is expected to remain volatile within a broader range of Rs 98,000-Rs 1,02,500."
Last week, gold traded volatile. As per Axis Securities report, Comex Gold traded with volatility last week but still ended with gains of nearly 1%. The softer-than-expected Non-Farm Payroll data reinforced signs of a cooling labour market and strengthened expectations of a Federal Reserve rate cut in September which supported prices at the lower level.
RBI's upcoming monetary policy decisions will also play a role in driving sentiments in yellow metal. Majority of economists are predicting status quo on August 6th, as RBI has already front-loaded at least 100 basis points cut in repo rate to 5.5% from February to June 2025 policy.
Co-relation of gold and interest rates?
According to Bullion By Post, gold and interest rates traditionally have a negative correlation in the relationship between the two. It is not guaranteed but usually the gold price goes up when interest rates go down, and down when rates go up. This is because rising interest rates make stocks, government bonds and other investments more attractive to investors. Lower interest rates make these alternative assets less appealing; driving investors towards gold, and increasing demand and the price accordingly. Gold is seen as a store of wealth for times of financial difficulty for this reason.
Disclaimer: The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.
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