The shining rally of gold and Silver may finally be losing its momentum. After a remarkable two-month bull run, both gold and silver prices have started to drop, raising concerns among investors about the right time to invest. Many are wondering if this is a temporary correction or the beginning of a longer-term downtrend.
Over the past few weeks, profit-taking and improved global risk sentiment have contributed to the weakening of precious metals. The sentiment that once drove gold to new highs is now fading as investors look for better returns elsewhere.
According to experts, the recent correction in gold prices signals a short-term pause rather than a collapse. market analysts believe that while gold may face near-term resistance, long-term fundamentals still support its value amid global economic uncertainty.
What’s Driving the Fall in Gold Prices?
According to Gaglani, “The European Central Bank (ECB) and the Bank of Japan (BOJ) are expected to maintain steady policy rates, while the US Federal Reserve is widely anticipated to cut interest rates by 25 basis points following softer CPI data last week.”
In India, however, physical demand for gold has slowed down due to record-high prices. Gaglani added that “strong support is seen near Rs 1,17,000 per 10 grams in the domestic market, with resistance around Rs 1,24,000.”
Simply put, unless a new wave of global uncertainty emerges, gold prices are likely to stay range-bound in the short term — not falling too much, but also struggling to rise significantly. Indian investors are advised to observe market cues before making fresh purchases.
Current Gold Price Levels
| Market | Support Level | Resistance Level | Current Trend |
|---|---|---|---|
| Gold (Domestic) | Rs 1,17,000 | Rs 1,24,000 | Range-bound |
| Gold (International) | $4,050 – $4,005 | $4,145 – $4,165 | Corrective |
| Silver (MCX) | Rs 1,46,250 – 1,45,150 | Rs 1,47,950 – 1,48,780 | Volatile |
Global Bullion Market Sentiment
The overall mood in the global bullion market remains cautious. According to Darshan Desai, CEO of Aspect Bullion & Refinery, “Gold prices continue to decline as safe-haven demand weakens amid optimism surrounding a potential US–china trade agreement and a strengthening US dollar.”
He further added, “Key events such as the US Federal Reserve announcement, meetings between US President Donald Trump and Chinese President Xi Jinping, and several major tech company earnings reports will heavily influence the bullion market this week.”
Desai cautioned that investors should be prepared for heightened volatility. “Positive news on trade relations or further gains in the US dollar could encourage more profit-taking in gold. Additionally, if the Federal Reserve signals fewer rate cuts than expected, that could apply additional downward pressure on gold prices.”
Silver Mirrors Gold’s Trend
Just like gold, silver prices are also experiencing a decline after two months of strong performance. Rahul Kalantri, Vice President of Commodities at Mehta Equities, explained that “a stronger dollar index and positive developments in the US-China and US-India trade talks were the main factors behind the pullback.”
He also pointed out that improved geopolitical stability, including progress in the Gaza peace process, encouraged investors to shift funds from precious metals to riskier assets such as equities. As a result, silver prices fell as global investors sought better yields elsewhere.
Currently, the price of silver on the MCX is around Rs 1,46,931 per kilogram. However, with easing inflation and expectations of interest rate cuts by the Federal Reserve, lower-level buying has reappeared in the market.
Kalantri noted, “Support for silver is seen between $47.80 and $47.20, while resistance stands between $48.65 and $48.95. In INR terms, silver support is around Rs 1,46,250–1,45,150 and resistance near Rs 1,47,950–1,48,780.”
Future Outlook: Should You Invest Now?
Experts suggest that the recent dip in gold and silver is more of a healthy correction than a long-term downturn. According to Aksha Kamboj, Executive Chairperson of Aspect Global Ventures and Vice President of the India Bullion and Jewellers Association, “After weeks of volatility, gold prices recorded their first weekly drop in over two months due to overbought conditions, easing US-China tensions, and profit-taking by investors.”
Kamboj emphasized that the downside may be limited. “Prices found support at lower levels as expectations for further monetary easing by the Federal Reserve strengthened after a softer US inflation report,” she said.
She further mentioned that the coming week will be critical for precious metals. “With meetings between Donald Trump and Xi Jinping in South Korea and the Federal Reserve’s upcoming policy decision, global investors will be closely monitoring any signals about future rate moves.”
If the Fed confirms a rate cut and trade negotiations proceed positively, gold could regain strength. However, if the dollar continues to strengthen, both gold and silver may remain under short-term pressure.
Investment Advice and Caution
For average investors, experts recommend patience. Prices of gold and silver are likely to fluctuate within a narrow range in the short term. With gold around Rs 1.22 lakh per 10 grams and silver near Rs 1.46 lakh per kg, both metals could attract buying interest at these levels. However, further appreciation may face resistance unless new global triggers arise.
Disclaimer: This article is for informational purposes only and should not be taken as investment advice. India Today does not endorse or recommend any specific investment products. Investors are advised to consult professional financial advisors before making investment decisions.
Key Takeaways
- Gold and silver prices decline after a two-month bull run amid global optimism and profit-taking.
- Experts expect range-bound movement with gold supported at Rs 1,17,000 and resistance near Rs 1,24,000.
- Silver mirrors gold’s trend, currently priced at around Rs 1,46,931 per kg on MCX.
- Market analysts recommend waiting for clearer signals from the US Federal Reserve and global trade developments.
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