Precious metals such as gold and silver are experiencing a resurgence, with prices climbing to their highest levels in over a week. On Monday, the price of gold in India surged by more than ₹2,000 per ten grams, signaling renewed investor interest in these safe-haven assets.
Gold Prices on the Rise
After a significant dip following a record high of $3,500 in the international market and ₹1 lakh per ten grams domestically, gold is attempting to regain lost value. The yellow metal fell below $3,300 but has recently bounced back from a low of $3,237, currently trading at $3,357. In the Indian market, the price for 24-carat gold stands at ₹96,070 for 10 grams.
- Current Gold Price: ₹96,070 for 10 grams
- Previous High: ₹1 lakh per 10 grams
- Recent Low: $3,237
Silver’s Impressive Gains
Silver is also on an upward trajectory, closing 1% higher at approximately $32.40 per ounce on Monday. Although still below its recent peak of $34.11 achieved on March 23, 2025, the demand for silver remains strong.
- Current Silver Price: $32.40 per ounce
- Recent High: $34.11 per ounce
Factors Influencing Prices
The recent gains in gold and silver can be attributed to the weakening of the U.S. dollar, primarily driven by ongoing tensions in U.S.-China trade relations. Despite President Donald Trump’s lack of plans to communicate with his Chinese counterpart this week, he has expressed a willingness to reduce tariffs on imports from China to bolster trade.
Last week, China suggested it might open trade discussions with the U.S. but insisted that all unilateral measures from Washington must be lifted first.
Upcoming Federal Reserve Meeting
Investors are closely monitoring the Federal Reserve’s policy meeting scheduled for tomorrow. Interest rates are expected to remain unchanged, but any dovish comments from Chairman Powell during the press conference could further elevate gold prices. Lower interest rates typically drive investors toward gold, especially in the current economic climate.
Market Dynamics and Predictions
Both gold and silver have gained traction due to a combination of a weaker dollar and global economic uncertainties. As of Tuesday, silver prices are up by 1.67%, while gold has increased by 0.67% compared to the previous day’s close. The gold-silver ratio now stands at 101:1, significantly higher than the average of 70:1. A reduction in U.S.-China trade tensions and a boost in economic activity could lead to a breakout for silver.
Dr. Renisha Chainani, Head of Research at Augmont, stated, “Gold prices retraced to the $3,210 level last week, a 50% Fibonacci retracement of its rally from $2,970 (~₹86,650) to $3,510 (~₹99,350). We anticipate prices to stabilize between $3,210 (~₹92,000) and $3,380 (~₹96,000), with any breakout setting a new trend for the upcoming days."
Future Outlook for Precious Metals
Silver is expected to consolidate between $32 (~₹93,500) and $34 (~₹98,500). The primary challenges facing both gold and silver include the de-escalation of the trade war, a strengthening dollar, and rising equity markets. However, potential recovery could be ignited by stalled trade negotiations or weakness in the labor market.
With the volatility in the global economy, investing in gold and silver continues to be a strategic choice for many investors looking for stability in uncertain times.
