Gold, silver rise up to 1% on weaker dollar, easing inflation fears
Synopsis
A US-Iran ceasefire sent crude oil tumbling — and that chain reaction lifted gold back from a nine-month low. With the dollar index sliding to 101.2 and inflation fears cooling, both gold and silver posted gains of up to 1.26% on MCX on Monday, with analysts watching key resistance levels that could determine whether this is a brief bounce or the start of a sustained recovery.
Key Takeaways
MCX Gold (August) traded at ₹1,44,173 per 10 grams on 27 July , up 0.75 per cent , with an intraday high of ₹1,44,230 .
MCX Silver (September) rose up to 1.26 per cent , touching ₹2,24,955 per kg intraday; last trading at ₹2,24,844 .
International spot gold gained about 1 per cent to near $4,100 per ounce ; silver rose to around $59 per ounce .
The dollar index fell to around 101.2 after the US-Iran suspension of hostilities eased energy supply fears.
Key resistance for gold: ₹1,45,500–₹1,46,000 ; for silver: ₹2,26,000–₹2,26,500 per kg .
Gold and silver prices climbed up to 1 per cent on Monday, 27 July, as a softer US dollar and easing inflation concerns — triggered by a sharp fall in crude oil prices following the US-Iran ceasefire — lifted demand for precious metals. The rally snapped gold's recent slide from a nine-month low.
MCX Price Movement
On the Multi Commodity Exchange (MCX), gold futures (August) opened at ₹1,43,575 per 10 grams against a previous close of ₹1,43,106. By around 12:10 pm IST, gold was trading at ₹1,44,173 per 10 grams, up ₹1,067 or 0.75 per cent, after touching an intraday high of ₹1,44,230 — a gain of approximately 0.8 per cent.
Silver futures (September) outperformed, surging as much as 1.26 per cent to an intraday high of ₹2,24,955 per kg. At last count, silver was trading at ₹2,24,844 per kg, up ₹2,706 or 1.22 per cent.
Global Markets
In international spot markets, gold gained approximately 1 per cent to trade near $4,100 per ounce, while silver rose close to 1 per cent to around $59 per ounce. The dollar index slipped to around 101.2 on Monday, giving back a portion of last week's gains as geopolitical de-escalation reduced fears over energy supply disruptions.
What Drove the Rally
According to market experts, the primary catalyst was the steep decline in crude oil prices after the United States and Iran suspended military operations. Lower crude prices reduced inflation expectations, which in turn weakened the dollar and made bullion more attractive to investors. Gold had been under pressure near a nine-month low before this session's rebound.
Notably, the dollar's retreat is a structural tailwind for gold — a weaker greenback makes dollar-denominated commodities cheaper for holders of other currencies, broadening demand. This is the latest in a series of geopolitics-driven swings in precious metal prices seen through 2025.
Technical Outlook and Levels to Watch
Market analysts maintain a cautiously positive near-term outlook for both metals. For MCX Gold, immediate resistance is seen in the ₹1,45,500–₹1,46,000 range, with support at ₹1,43,500–₹1,43,000. A sustained close above the resistance band could reinforce the recovery.
For MCX Silver, resistance is placed at ₹2,26,000–₹2,26,500 per kg, followed by ₹2,28,000–₹2,28,500, while support lies in the ₹2,23,000–₹2,22,300 range. Analysts note that prices must hold above current levels and clear immediate resistance to build further upside momentum.
Whether the rally sustains will depend on the durability of the US-Iran ceasefire and incoming US inflation data, both of which will shape dollar direction in the sessions ahead.
Point of View
The dollar could recover quickly, unwinding these gains just as fast. Investors betting on a sustained gold recovery are essentially betting on geopolitical calm holding — a historically unreliable assumption.
NationPress
27 Jul 2026
Frequently Asked Questions
Why did gold and silver prices rise on 27 July 2025?
Gold and silver rose up to 1 per cent on 27 July after the US-Iran suspension of hostilities caused crude oil prices to fall sharply, easing inflation concerns and weakening the US dollar. A softer dollar makes dollar-denominated bullion cheaper for global buyers, boosting demand.
What are the current MCX gold and silver prices?
On MCX, gold futures (August) were trading at ₹1,44,173 per 10 grams, up 0.75 per cent, while silver futures (September) were at ₹2,24,844 per kg, up 1.22 per cent, as of around 12:10 pm IST on 27 July.
What is the near-term outlook for gold and silver?
Market experts maintain a cautiously positive near-term outlook. For MCX Gold, a sustained move above ₹1,45,500–₹1,46,000 could extend the recovery, while MCX Silver needs to clear ₹2,26,000–₹2,26,500 per kg to gather further upside momentum.
How did the US-Iran ceasefire affect commodity markets?
The suspension of hostilities between the US and Iran led to a sharp decline in crude oil prices, which reduced global inflation expectations and weakened the dollar index to around 101.2. This combination made precious metals more attractive and drove the gold and silver rally on Monday.
Where does gold stand relative to recent price history?
Gold had been trading near a nine-month low before Monday's session. The rebound on 27 July, supported by easing geopolitical tensions and a weaker dollar, marks a recovery from that recent trough, though analysts caution that the rally's durability depends on the ceasefire holding and upcoming US inflation data.
