Gold and silver futures witnessed a strong rally on August 21. The sharp surge in gold and silver prices in international markets impacted futures in India. On the commodity exchange MCX, gold futures rose by ₹1,771 in the afternoon to reach ₹1,61,196 per 10 grams. Silver futures also climbed by ₹3,128, nearing the ₹2,46,371 per kilogram mark.

**Gold Nears $4,600 in International Markets**

In the international market, gold rose by 1.73% to trade at $4,594 per ounce. Silver surged by 2.34% to trade at $69.67 per ounce. Gold prices in the international market have hit a three-month high. This marks the third consecutive week of gains for gold, a trend that has alleviated concerns among gold investors.

**Gold and Silver Prices Were at Record Highs in January**

Gold prices had reached an all-time high in January of this year. However, the metal saw a sharp decline after touching ₹1.80 lakh per 10 grams. Silver had also peaked at ₹4.25 lakh per kilogram before experiencing a steep drop. Pressure on bullion prices mounted following the outbreak of conflict between the US and Iran on February 28.

**Reasons Behind the Resurgent Rally in Gold and Silver**

Experts attribute the rally in gold and silver to the weakening dollar index and softening US bond yields. A weaker dollar makes purchasing gold in other currencies cheaper. However, crude oil prices remain above $93 per barrel, raising concerns about potential inflation. To curb inflation, central banks—including the US Federal Reserve—might raise interest rates, which could have a negative impact on gold prices. Also Read: Gold Price: Gold surged 5% this week; find out the reasons behind this and whether investment opportunities still exist.

Is this the right time to invest?

Investors can use every dip in gold prices as an opportunity to buy. However, experts advise against making a lump-sum investment at current levels. Those already investing in Gold ETFs via SIPs are advised to continue their investments. Gold is unlikely to see a sustained rally until crude oil prices come down; however, prices are not expected to fall significantly below current levels either. New investors can start investing in Gold ETFs in a staggered manner.

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