Gold Price Rally: Gold Rises Over ₹10,000 in 10 Days — Can Prices Go Higher?
The gold price rally in India has accelerated sharply in August, with the price of 24-karat gold rising by more than ₹10,000 per 10 grams in just about two weeks. From around ₹1.52 lakh per 10 grams on August 10, the domestic rate climbed to roughly ₹1.63 lakh by August 24, according to tracked Indian gold-price data.
The international market is also showing strong momentum. Spot gold crossed $4,677 per ounce on August 24, reaching its highest level in more than three months, according to Reuters.
That raises the question many Indian buyers and investors are now asking: after such a sharp rise, can gold continue higher, or is a correction approaching?
The answer depends largely on US interest rates, the dollar, geopolitical developments, bond yields and investment demand.
Gold Price Jumps More Than ₹10,000 in Around 10 Days
The recent move has been unusually strong.
According to historical Indian rate data, 24K gold was around ₹1,51,630 per 10 grams on August 10. By August 23, the tracked rate had reached approximately ₹1,63,240. A separate August 24 market reference put the rate around ₹1,62,810 per 10 grams.
That means the increase from August 10 to August 24 was roughly ₹11,000 per 10 grams, or more than 7%.
The rise has not been completely smooth. Gold experienced several strong daily moves, including a particularly sharp increase around August 21.
For jewellery buyers, the actual amount payable will be higher than the quoted bullion rate because jewellery prices can include making charges, taxes and other costs.
Why Is Gold Rising So Quickly?
Several factors are supporting the current gold rally.
1. US bond yields and the dollar are falling
Gold does not pay interest or dividends, so its attractiveness often improves when bond yields decline.
Reuters reported that the latest rally was supported by lower US bond yields and a weaker US dollar, alongside expectations surrounding US monetary policy.
A weaker dollar can also make gold relatively cheaper for buyers using other currencies, potentially supporting international demand.
This is particularly important because gold is globally priced in US dollars.
2. Investors are returning to gold as a safe haven
Geopolitical uncertainty remains another major driver.
The continuing tensions surrounding the US-Iran conflict have kept investors focused on geopolitical and economic risks. Moneycontrol said gold's next moves could be influenced by US-Iran developments, crude oil, bond prices and upcoming US economic data.
Gold is traditionally viewed as a safe-haven asset—an asset investors may turn toward when uncertainty rises.
However, the relationship is not automatic. Earlier in 2026, gold actually suffered a sharp sell-off during the Iran conflict as markets prioritised liquidity and investors sold assets to raise cash. Reuters noted that gold subsequently rebounded strongly in August.
That is an important reminder: even gold can fall during a crisis.
ETF Demand Is Adding Another Layer of Support
Investment demand is also showing signs of improvement.
Reuters reported that gold-backed exchange-traded funds recorded their strongest weekly inflows in 10 months, with approximately 46.7 metric tonnes worth $6.4 billion flowing into the funds during the week cited.
For beginners, a gold ETF is a financial product designed to provide exposure to gold without requiring investors to store physical bars or jewellery.
Strong ETF inflows matter because they indicate that institutional and financial-market investors are increasing exposure to the metal.
If these flows continue, they could provide an additional source of demand.
Can Gold Rise Further From Here?
The possibility remains.
Reuters reported that technical and fundamental indicators were supporting the latest move, with gold having moved above its 200-day moving average and momentum turning more positive. Analyst Jim Wyckoff told Reuters that the technical and fundamental picture was aligned in favour of further upward momentum unless the trend reverses.
But that does not mean gold is guaranteed to keep rising.
The market has already moved significantly, and the faster an asset rises, the greater the possibility of profit-booking.
Investors should therefore distinguish between a bullish trend and a one-way market.
A bullish trend can still contain substantial corrections.
The US Federal Reserve Will Be Crucial
Perhaps the biggest near-term factor is US monetary policy.
Markets are closely watching upcoming US inflation data and Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole Symposium, according to Reuters.
If markets increasingly expect lower US interest rates, gold could receive additional support because the opportunity cost of holding a non-yielding asset falls.
On the other hand, stronger-than-expected inflation or economic data could push interest-rate expectations in the opposite direction.
That could strengthen the dollar and US Treasury yields, potentially putting pressure on gold.
What Could Stop the Gold Rally?
There are several risks that gold investors should not ignore.
Stronger US dollar
A sharp recovery in the dollar could weigh on international gold prices.
Higher bond yields
If Treasury yields rise significantly, some investors may prefer interest-bearing assets over gold.
Easing geopolitical tensions
A meaningful reduction in global geopolitical risk could reduce demand for safe-haven assets.
Profit-booking
After a rapid rally, investors who bought at lower levels may decide to lock in gains.
Weak physical demand
Extremely high prices can discourage jewellery purchases and other forms of physical demand, particularly in price-sensitive markets such as India.
Reuters has already noted that jewellery and coin demand remain relatively weak compared with the strength of investment demand.
What About Gold Prices in India?
Indian investors have one additional variable to watch: the rupee.
International gold prices are generally quoted in US dollars. Therefore, even if global gold prices remain unchanged, a weaker rupee can make gold more expensive in India.
Conversely, a stronger rupee can partially offset an international gold rally.
This is why Indian gold prices do not always move exactly in line with the dollar gold price.
Domestic taxes, premiums and local market conditions also affect the final price paid by consumers.
Should You Buy Gold After This Rally?
This is where investors need to avoid chasing momentum blindly.
Someone buying gold for a long-term portfolio is in a different position from someone purchasing jewellery next week or trading gold futures.
For long-term investors, gold can play a diversification role. But after a rapid price increase, spreading purchases over time may reduce the risk of committing the entire amount immediately before a correction.
For example, instead of trying to identify the exact top or bottom, an investor could consider a staggered approach depending on their financial goals and risk tolerance.
For physical gold buyers, the calculation is different because making charges and other costs can reduce investment efficiency.
Gold ETFs and other regulated investment products can offer different ways to gain exposure, but each has its own costs and risks.
What Should Investors Watch Now?
The next phase of the gold rally could depend on a handful of major indicators:
- US inflation data
- Federal Reserve interest-rate expectations
- US Treasury yields
- Dollar index
- Geopolitical developments
- Gold ETF inflows
- Central-bank gold demand
- Rupee-dollar movement
- Crude oil prices
Among these, US monetary-policy expectations may be particularly important in the short term.
If yields and the dollar continue falling while investment demand remains strong, gold could retain its upward momentum.
If yields rebound sharply and investors begin booking profits, the metal could face a correction.
The Bottom Line
The latest gold price rally in India is significant. From around ₹1.52 lakh per 10 grams on August 10, 24K gold moved to roughly ₹1.63 lakh by August 24, an increase of more than ₹10,000 in about two weeks.
Internationally, gold has also regained momentum, supported by a weaker dollar, lower bond yields, strong ETF inflows and renewed safe-haven demand.
The outlook remains constructive, but that does not mean prices will rise every day. At these elevated levels, volatility and profit-booking are genuine risks.
For investors, the most important thing to watch now is not simply the latest gold price. US interest-rate expectations, bond yields, the dollar and global risk sentiment could determine whether this rally extends or pauses.
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This article is for informational and educational purposes only and should not be considered investment advice
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