Gold prices gained 1.18 per cent on a weekly basis as of 19 September 2026, buoyed by retreating crude oil prices, even as a hawkish US Federal Reserve outlook and rising Treasury yields capped the precious metal's upside.

Domestic Prices at a Glance

On Friday, MCX gold futures expiring in October slipped 0.84 per cent intraday, while MCX silver futures for December edged down 0.16 per cent. Gold futures were last quoted at ₹1,54,263, and silver futures stood at ₹2,42,000 per kg.

The price of 10 grams of 24-carat gold reached ₹1,53,727 on Friday — up from ₹1,51,938 recorded the previous Friday, according to data published by the India Bullion and Jewellers Association (IBJA). That weekly gain of roughly ₹1,789 per 10 grams underscores how domestic retail buyers have been absorbing elevated prices with little relief.

What Drove the Weekly Rally

The week opened with crude oil prices under pressure, falling for three consecutive sessions to below $100 a barrel on Friday. Markets concluded that the closure of Saudi Arabia's key East-West pipeline — combined with an attack on a vessel in the Strait of Hormuz — would have a smaller impact on global supplies than initially feared. Lower energy costs eased inflationary pressure, briefly lifting sentiment toward non-yielding assets such as gold.

Silver outperformed gold during the week, drawing additional support from expectations of a sixth consecutive annual supply deficit in 2026 of around 46.3 million ounces, according to market participants.

The Fed Effect: Rate Hike Overshadows Relief Rally

The relief proved short-lived. The US Fed delivered a 25-basis-point rate hike this week, raising the federal funds target range to 3.75 per cent–4 per cent — its first increase since 2023. Crucially, a majority of Fed officials signalled a preference for further tightening this year, keeping the door open to another increase.

Markets subsequently priced the probability of an additional rate hike in October at approximately 55 per cent. Treasury yields moved above 5 per cent, prompting both gold and silver to pare gains shortly after the announcement. This comes amid a broader global repricing of rate expectations, which has made non-yielding bullion less attractive relative to interest-bearing instruments.

Key Technical Levels to Watch

For Comex Gold, analysts have placed immediate resistance in the $4,470–$4,500 zone, with support at $4,300–$4,340. On the domestic front, MCX Gold faces resistance in the ₹1,54,000–₹1,54,700 range, while support is seen at ₹1,50,000–₹1,50,700, according to analysts.

With the Fed's next policy meeting drawing closer and geopolitical risks in the Middle East unresolved, gold's near-term trajectory will hinge on the pace of US rate expectations and any fresh disruption to energy supply chains.