Gold prices climbed sharply on August 7, with 24K, 22K and 18K rates rising across India. Check the latest city-wise gold and silver prices and the key factors influencing the bullion market. Gold prices witnessed a sharp jump on August 7, with rates rising across all major purities compared to the previous day. Inflation can affect gold prices, but it is not the primary factor driving gold rates in India. Higher interest rates make interest-bearing assets such as government bonds more attractive than gold, which does not generate regular income.