Gold, silver surge up to 3% this week as crude oil dip eases inflation fears
Synopsis
Gold and silver posted weekly gains of up to 3.48% on the MCX as crude oil fell below $100 a barrel, easing energy inflation fears. Silver outperformed gold, driven by a projected supply deficit of 46.3 million ounces in 2026 — even as the US Fed hiked rates by 25 basis points and signalled more tightening ahead.
Key Takeaways
MCX gold (October) rose 0.84% to ₹1,54,263 per 10 grams on 19 September .
MCX silver (December) gained 0.16% to ₹2,42,000 per kg on Friday.
On a weekly basis, silver surged 3.48% (up ₹7,988 ) while gold added over 1% per IBJA data.
Crude oil fell below $100 a barrel for three consecutive sessions, easing energy-driven inflation concerns and supporting bullion.
The US Federal Reserve raised its policy rate by 25 basis points to a range of 3.75%–4% , capping the upside for gold.
Silver's rally is underpinned by an estimated supply deficit of 46.3 million ounces in 2026 — a sixth straight year of shortfall.
Gold and silver prices surged as much as 3 per cent this week on the Multi Commodity Exchange (MCX), supported by a decline in crude oil prices that eased concerns over energy-driven inflation. The rally unfolded even as the US Federal Reserve raised its policy rate and maintained a hawkish tone, keeping precious metals under pressure for much of the early part of the week.
Friday's Session: Gold and Silver Levels
On Friday, 19 September, MCX gold futures (October) rose 0.84 per cent or ₹1,282 to settle at ₹1,54,263 per 10 grams. The yellow metal touched an intraday high of ₹1,54,600 and an intraday low of ₹1,52,171 during the session.
MCX silver futures (December) edged up 0.16 per cent to ₹2,42,000 per kg, swinging between an intraday high of ₹2,43,047 and a low of ₹2,38,173.
According to data from the India Bullion and Jewellers Association (IBJA), 24-carat gold stood at ₹1,53,727 per 10 grams on Friday — up ₹1,789 or over 1 per cent from ₹1,51,938 on 11 September.
Weekly Gains: Silver Outshines Gold
Silver emerged as the stronger performer over the week. According to IBJA data, the white metal climbed ₹7,988 or 3.48 per cent from ₹2,28,920 on 11 September to ₹2,36,908 per kg. On a daily basis, silver rose ₹7,266 or 3.16 per cent from ₹2,29,642 on Thursday.
Market experts attributed silver's outperformance to expectations of a supply deficit for the sixth consecutive year. Silver supply is estimated to fall short of demand by around 46.3 million ounces in 2026, according to analyst assessments.
What Drove the Weekly Rally
Precious metals faced headwinds at the start of the week, with supply-related risks in the Middle East and signals from the US Federal Reserve pressing on sentiment. Higher US bond yields — driven by expectations of continued monetary tightening — weighed on non-yielding assets such as gold.
The turning point came when crude oil prices declined for three consecutive sessions and fell below $100 a barrel. Markets reassessed the impact of the closure of a key Saudi Arabian pipeline, concluding the supply disruption would be smaller than initially feared. This eased energy inflation concerns and lent support to bullion.
Notably, however, the relief proved short-lived. The Fed raised its policy rate by 25 basis points this week, taking the federal funds rate to a range of 3.75 per cent to 4 per cent. Most signals from Fed officials indicated that monetary tightening could continue further this year, capping the upside for gold.
Technical Levels to Watch
Analysts identify the $4,470–$4,500 per ounce zone as near-term resistance for COMEX gold, with $4,300–$4,340 serving as an important support zone. For MCX gold, the ₹1,54,000–₹1,54,700 range is viewed as immediate resistance, while ₹1,50,000–₹1,50,700 is expected to provide strong support.
What Investors Are Watching Next
Experts say investors will closely track US interest rates, bond yields, and global geopolitical developments in the coming days, as these are likely to play a decisive role in setting the direction for gold and silver prices. With the Fed signalling further rate hikes and crude oil markets remaining volatile, the path for precious metals is likely to remain choppy.
Point of View
MCX gold hovering near the ₹1,54,000 resistance zone is a critical technical threshold; a confirmed break higher could trigger momentum buying. The real watch point, however, is whether the Fed's tightening cycle peaks earlier than expected — that, more than crude oil, will decide gold's next leg.
NationPress
19 Sept 2026
Frequently Asked Questions
Why did gold and silver prices rise this week?
Gold and silver prices rose up to 3% this week primarily because crude oil prices fell below $100 a barrel for three consecutive sessions, easing fears over energy-driven inflation. This supported bullion even as the US Federal Reserve raised its policy rate by 25 basis points.
What is the current MCX gold price today?
MCX gold futures (October) settled at ₹1,54,263 per 10 grams on Friday, 19 September, up 0.84% or ₹1,282 in the session. The intraday high was ₹1,54,600 and the low was ₹1,52,171.
Why did silver outperform gold this week?
Silver outperformed gold due to expectations of a supply deficit for the sixth consecutive year in 2026, with supply estimated to fall short of demand by around 46.3 million ounces. MCX silver gained 3.48% on a weekly basis, compared to gold's roughly 1% weekly gain.
What did the US Federal Reserve do this week and how does it affect gold?
The US Federal Reserve raised its policy rate by 25 basis points, taking the federal funds rate to a range of 3.75% to 4%, and signalled further tightening. Higher rates push up bond yields, which weigh on non-yielding assets like gold, limiting its upside despite the crude oil-driven relief.
What are the key technical levels for MCX gold and COMEX gold?
For MCX gold, analysts see ₹1,54,000–₹1,54,700 as immediate resistance and ₹1,50,000–₹1,50,700 as strong support. For COMEX gold, the $4,470–$4,500 per ounce zone is near-term resistance, while $4,300–$4,340 is the key support band.
