Editor’s Note
This article examines the current investor sentiment around gold and silver as safe-haven assets. It highlights the potential for gold’s strength to persist amid market uncertainty, while noting that silver’s rally may be showing signs of moderation.
Gold and silver are once again in discussion among investors. When uncertainty increases in the market, investors’ inclination often turns towards safe options. A similar atmosphere is visible for this week as well. Analysts believe that the strength in gold may continue, while after the recent sharp rally, silver’s movement may appear to be slowing down a bit.
According to analysts, increasing demand for safe investment and expectations of policy rate cuts from the US Federal Reserve are creating a strong base for gold. In addition, important global economic data releases will also determine investors’ strategies. These include inflation figures, the Personal Consumption Expenditure index, GDP growth, and unemployment-related data.
According to Pranav Mer, Vice President (Commodity & Currency Research) at JM Financial Services, economic data coming from China will be particularly important for industrial metals. Along with this, Donald Trump’s address at the World Economic Forum and the US Supreme Court’s decision related to trade tariffs could also influence market direction.
Last week, gold futures prices on the Multi Commodity Exchange (MCX) rose by 2.7 percent, or 3,698 rupees. During this period, on Wednesday, gold reached a record level of 143,590 rupees per 10 grams. Mer said,
In the international market, gold futures on COMEX rose 2.09 percent to close at $4,595.4 per ounce. During the week, it also reached a record level of $4,650.50 per ounce.
Prathamesh Mallya, Vice President (Research) at Angel One, says that geopolitical tensions, a weak dollar, low bond yields, and continuous buying by central banks are providing strong support to gold. According to him, gold prices on MCX could go up to 146,000 rupees per 10 grams and to $4,750 per ounce in the global market.
As far as silver is concerned, a strong rally was seen last week. Silver prices on MCX increased by nearly 14 percent, or 35,037 rupees, reaching a record level of 292,960 rupees per kilogram. In the international market, silver also rose 11.6 percent to close at $88.53 per ounce.
Analysts believe that after such a prolonged rally, silver may see limited range trading or a slight correction. However, the long-term trend still remains positive. According to Vijay Kuppa, CEO of InCred Money, a slight pause or minor decline in silver is natural and will not have a major impact on the long-term trend.