Precious Metals Gain: Gold Climbs to ₹1,00,920, Silver Rises on Festive Demand and Global Cues

Gold prices continued their upward trajectory on Thursday, gaining ₹10 to reach ₹1,00,920 per 10 grams in the national capital. Silver also witnessed an uptick, rising ₹100 to trade at ₹1,11,100 per kg. The increase in domestic prices aligns with heightened geopolitical tensions and cautious investor sentiment globally, which has revived interest in traditional safe-haven assets.

International Cues Drive Domestic Prices

In the international market, gold was trading flat at $2,330 per ounce, while silver remained steady at $29.40 per ounce. The yellow metal's resilience comes amid renewed concerns over macroeconomic stability, including persistently high inflation in major economies and volatile currency movements.

Analysts note that dovish cues from central banks regarding potential rate cuts later this year have also lent support to bullion prices. A softer dollar and declining yields in the US Treasury market are key factors fuelling the appeal of non-interest-bearing assets like gold and silver.

Domestic Demand and Festive Outlook

Domestically, the rise in gold prices reflects not just global cues but also underlying demand resilience. With the onset of the festive and wedding seasons, retail demand is expected to remain buoyant, particularly in rural markets. However, elevated prices could limit fresh jewellery purchases and push consumers towards recycled gold.

Dealers also report steady buying from institutional and high-net-worth investors amid ongoing uncertainty in equity markets. Silver, with its dual role as an investment and industrial metal, has benefitted from improved demand in electronics and renewable energy segments.

Investment Strategy: Hedge Against Volatility

Market strategists suggest that gold and silver remain attractive hedging instruments in portfolios, especially given the volatile equity landscape and mixed signals on global economic recovery. With inflation concerns still prevalent and the possibility of further geopolitical shocks, precious metals offer diversification benefits.

Exchange-traded funds (ETFs) and sovereign gold bonds continue to attract flows, further supporting bullion prices. Retail participation in silver ETFs has also seen a gradual rise, tracking the global trend.

Outlook: Price Action Likely to Stay Elevated

Looking ahead, bullion analysts expect gold to consolidate around the ₹1,01,000 mark in the near term, with upside capped by intermittent profit-booking and resistance near the $2,350 level internationally. Silver, on the other hand, may see more directional moves owing to its industrial demand dynamics.

The overall sentiment remains positive as long as macroeconomic uncertainty and geopolitical risks persist, with the Reserve Bank of India and other central banks closely watching commodity inflation trends.

Conclusion

The slight gains in gold and silver reflect investor caution and the ongoing preference for safe assets amid a complex global backdrop. With supportive global cues and seasonal domestic demand, precious metals are poised to remain in focus, both as a consumption and investment asset class.

Disclaimer: This news is solely for educational purposes. The securities/investments quoted here are not recommendatory.

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