Gold prices in Bangalore recorded a notable surge on Monday, August 24, dampening expectations of any steeper corrections in the precious metal. The upward movement affected 24 karat, 22 karat, and 18 karat gold varieties across the Karnataka capital.
Latest Gold Rates in Bangalore
According to data, the price of 24 karat gold in Bangalore increased by Rs 88 per gram, reaching Rs 16,397 per gram. Meanwhile, 22 karat gold rose by Rs 80 per gram to settle at Rs 15,030 per gram, and 18 karat gold jumped by Rs 61 per gram to trade at Rs 12,293 per gram.
In contrast to the sharp movement in gold, silver prices in Bangalore remained completely unchanged on Monday. Silver stood at Rs 260 per gram and Rs 2,60,000 per kilogram. Market participants note that silver has displayed relatively range-bound movement over the past few months, moving away from the wild price swings witnessed earlier in January and February.
International Market Drivers
The domestic price hike closely mirrored developments in global markets, where international gold rates climbed to $4,650 per ounce on Monday. This extension of last week's gains pushed the metal to its highest level since mid-May. Ongoing concerns regarding US debt management and fiscal sustainability played a significant role, driven by the Treasury's unexpected increase in longer-dated debt buybacks.
As explained in a Motilal Oswal report, gold began the year on a solid foundation backed by tariff uncertainties, robust ETF inflows, continuous central bank purchases, and expectations of Federal Reserve rate cuts. However, the market narrative shifted in the second quarter as trade tariffs and geopolitical tensions turned inflationary, steering investors toward a prolonged higher-for-longer interest rate environment and keeping real Treasury yields elevated.
