Sony's 25th anniversary edition of the album, which reached number one in 1986, has moved 45-6 in the midweeks with sales more than doubling on the week, according to the Official Charts Company.
The re-issued album spent two weeks at number 10 last month, but it looks poised to better that when the week's final artist albums chart is published on Sunday.
Simon will perform Graceland at Hard Rock Calling in London's Hyde Park next Sunday (July) with a line-up featuring trumpeter Hugh Masekela and Ladysmith Black Mambazo, who both played on the original album.
Above Graceland, RCA act Chris Brown is on course for his first-ever UK number one album with newly-issued Fortune, which is currently 72% ahead in sales of nearest challenger Overexposed by A&M/Octone/Polydor's Maroon 5. Warner Bros's Linkin Park album Living Things, which entered at one last Sunday, is the week so far's third top artist seller, while Asylum/Atlantic's Ed Sheeran drops 3-4 with + and Virgin's Emeli Sande holds at five with Our Version Of Events.
The week's 10 biggest-selling singles are exactly the same as they were on last Sunday's chart but reshuffled with Maroon 5 featuring Wiz Khaifa's Payphone little more than 1,000 sales ahead currently of Chris Brown's Don't Wake Me Up in first place. Payphone was second on last Sunday's chart and Don't Wake Me Up second, while Interscope/Polydor's will.i.am featuring Eva Simons singe This Is Love is down to three in the midweeks having debuted at the top last weekend. Atlantic's Flo Rida holds at four with Whistle and Warner Bros's second Stooshe single Black Heart moves back up 8-5.
The full midweek singles and albums charts are on musicweek.com.