Editor’s Note
This analysis highlights the resilience of precious metals markets, with recent gains underscoring sustained demand driven by safe-haven sentiment and institutional buying. The outlook remains tethered to key macroeconomic indicators and central bank policy, suggesting continued volatility ahead.
The recent rally in precious metals after a recent decline indicates that the market fundamentals remain strong. Demand for safe-haven investments, central bank purchases, and global uncertainty are supporting gold and silver. In the coming period, inflation data and Federal Reserve decisions will determine their direction. For now, investor confidence appears to be holding steady.
On the last trading day of the week, Friday, activity returned to the precious metals market. After a sharp decline in the previous session, investors bought at lower levels, leading to a strong rally in gold and silver prices.
On the Multi Commodity Exchange (MCX), the country’s leading futures market, gold for April delivery rose more than 1 percent in early trade to reach a day’s high of Rs 1,54,837 per 10 grams. Meanwhile, silver for March delivery jumped more than 2.50 percent to a high of Rs 2,43,699 per kilogram. However, as of around 11:32 AM at the time of writing, gold expiring on April 2 on MCX was trading at Rs 1,53,759 per 10 grams, up 0.60 percent or Rs 923. Silver expiring on March 5 was holding steady at Rs 2,40,966 per kilogram, up 1.92 percent or Rs 4,531.
According to Sandeep Raichura, Director of PL Capital, gold appears to be strengthening again after the decline at the end of January. He says the recent decline was not a sign of market weakness, but rather a result of profit-taking. Experts believe gold prices could reach $6,000 per ounce by the end of 2026. Demand for gold as a safe-haven investment and continuous purchases by central banks are keeping its long-term outlook positive.
Volatility in precious metals continues at the international level as well. Gold on COMEX is trading between $4,850 and $5,100 per ounce. Previously, it had reached $5,500 to $5,600, after which profit-taking was seen. As for silver, it is trading in the range of $73 to $84, while recently it had reached above $121. Meanwhile, US President Donald Trump’s approval of a trade deal with India and signals of a potential deal with Brazil have provided some relief regarding global trade. However, inflation and global economic uncertainty are still keeping investors cautious.
In the market, the dollar index rose to 97 on Friday, up from 96.93 in the previous session. A strong dollar typically puts pressure on gold prices, but this time demand for safe-haven investments supported gold. Now, investors are focused on US inflation data. These figures will provide clues about what decisions the Federal Reserve might take regarding interest rates going forward. Potential interest rate cuts could provide additional support for gold.
According to experts, many central banks around the world are continuously buying gold, providing long-term support to its prices. On the other hand, silver supply is limited, while industrial demand remains stable. Demand for silver remains strong due to its use in the electronics, solar, and auto sectors.
Market analysts say gold is finding strong support at the level of Rs 1,54,000 per 10 grams, while silver is finding support around Rs 2,42,000 per kilogram. If these levels hold, the possibility of further gains cannot be ruled out. For now, investors are keeping an eye on global economic signals, the dollar’s movement, and US interest rate decisions.
