Gold and silver prices took a step back midweek, signaling a cautious mood in the bullion market just before the festive buying season. Investors are closely watching the latest market trends as price fluctuations continue to reflect global and domestic cues.
Gold Prices Slide Despite Festive Demand
On Wednesday morning, gold futures on the Multi Commodity Exchange (MCX) slipped by 0.64% to ₹95,410 per 10 grams. In the international spot market, gold also dipped by 0.79%, settling at $3,310.01 per ounce. While Akshaya Tritiya typically brings a surge in gold purchases across India, high prices and global uncertainty are keeping investors cautious this season.
Deveya Gaglani, Senior Research Analyst at Axis Securities, warned that the current risk-reward ratio appears unfavorable at these elevated levels. “If prices stay above ₹100,000, we could see a rally toward ₹110,000 by next Akshaya Tritiya,” he noted. On the flip side, there’s potential for consolidation around ₹87,000 if the bullish momentum fades.
The recent dip comes on the heels of record highs, largely driven by profit booking and renewed interest in the U.S. dollar. Satish Dondapati, Fund Manager at Kotak Mahindra AMC, added, “Despite the short-term pullback, the long-term outlook for gold remains positive due to central bank buying and persistent geopolitical risks.”
Silver Holds Firm Amid Industrial Demand
Silver prices, meanwhile, have shown resilience. On MCX, silver eased slightly—down 0.19%—to ₹97,930 per kg. In the Mumbai retail market, it saw a marginal drop of ₹100 to trade at ₹1,00,400 per kg, as reported by Goodreturns.in.
Industry experts attribute silver’s relative strength to ongoing industrial demand and its role as a safe-haven asset. “The long-term trajectory for silver remains upward,” said Dondapati. “With expectations of lower interest rates and ongoing economic volatility, silver is benefiting from both industrial and investment appeal.”
What’s Driving Market Trends?
Several factors are currently influencing bullion rates in India. These include global spot prices, currency fluctuations, import duties, and local demand patterns. The ongoing tariff tensions, macroeconomic uncertainties, and record central bank purchases have all contributed to elevated gold prices.
As Akshaya Tritiya approaches—a day considered highly auspicious for gold buying—consumers may face a tough decision. With gold trading near historical highs, many may opt for smaller purchases or shift focus to silver. That said, both metals are expected to retain long-term value, especially amid volatile global conditions.
Staying informed on market trends is more crucial than ever for investors and traders navigating these uncertain times. With gold and silver playing dual roles as cultural symbols and financial assets, their movement offers a valuable window into broader economic dynamics.