Mumbai: Gold prices in India rose modestly on Thursday, climbing ₹10 to settle at ₹99,290 per 10 grams in the domestic bullion market. The marginal gain comes as investors weigh persistent global uncertainties, including inflationary pressures and currency fluctuations, keeping the precious metal near the key ₹1 lakh psychological level.
The uptick reflects continued demand for gold as a safe-haven asset amid heightened geopolitical risks and macroeconomic instability.
Silver Declines on Weaker Industrial Demand
Silver prices, meanwhile, fell by ₹100 to ₹1,08,800 per kilogram, as investors engaged in profit-booking following recent gains. Analysts cited muted industrial demand and caution ahead of key global economic data releases as contributing factors to the decline.
Unlike gold, silver functions both as a monetary and industrial commodity, making it more susceptible to shifts in manufacturing activity and economic sentiment.
Global Factors Driving Price Movements
A confluence of factors continues to influence bullion prices. Persistent inflation concerns have supported gold’s appeal as a hedge, while the rupee’s depreciation against the US dollar has made gold imports costlier, further boosting domestic prices.
Tensions in the Middle East also weighed heavily on market sentiment. Reports of Israeli airstrikes on Iranian nuclear facilities rattled global markets, leading to a flight to safety that benefited gold.
Silver, in contrast, saw a pullback as traders assessed demand prospects in sectors such as electronics and renewable energy, which rely heavily on industrial silver usage.
Market Outlook: Range-Bound with Volatility Ahead
Analysts anticipate that gold will remain in a consolidation phase in the short term, with price direction likely influenced by central bank policy decisions, currency trends, and evolving geopolitical dynamics. Silver may face continued headwinds unless there is a tangible recovery in industrial demand.
Investor Perspective
Investment advisors continue to recommend gold as a core holding for portfolio diversification and a hedge against systemic risks. Silver, while offering higher volatility and potential upside, is expected to remain range-bound unless supported by strong macroeconomic or industrial cues.
Investors are advised to monitor global developments closely, including monetary policy shifts and demand trends, to navigate the evolving landscape in the precious metals market.
