Gold and silver prices moved cautiously on Thursday as investors assessed the latest signals on US interest rates, movements in the dollar and continuing geopolitical tensions. In India, gold remained around the ₹1.42 lakh level per 10 grams, while silver traded above ₹2.17 lakh per kg.
On the Multi Commodity Exchange (MCX), gold was trading around ₹1,42,530 per 10 grams in early trade, while silver was at about ₹2,17,010 per kg. The two precious metals have remained volatile in recent sessions as investors react to changing expectations about global interest rates and economic growth.
Internationally, spot gold was trading around $4,060-$4,080 an ounce after gaining sharply in the previous session. However, higher US Treasury yields later put pressure on the yellow metal. Gold is particularly sensitive to movements in bond yields because it does not generate interest income. When yields rise, some investors tend to shift money towards interest-bearing assets.
The US Federal Reserve has kept interest rates unchanged, but uncertainty over the next move continues to influence financial markets. Investors are now looking closely at upcoming US economic data, particularly inflation and growth figures, for clues about the direction of monetary policy.
Expectations around US interest rates are important for gold prices. A softer interest-rate outlook generally supports gold by reducing the opportunity cost of holding the metal. On the other hand, expectations of higher rates can strengthen the US dollar and put pressure on bullion prices.
Geopolitical developments are another important factor. Continued tensions in the Middle East have kept demand for safe-haven assets in focus. Gold often attracts buying during periods of political or economic uncertainty as investors look for assets that can provide some protection against market volatility.
Despite the short-term fluctuations, gold continues to trade at historically elevated levels. The metal has remained above ₹1.4 lakh per 10 grams in the domestic market, although recent sessions have seen periods of profit booking and consolidation.
The near-term movement is expected to remain range-bound unless a major global trigger changes market sentiment. For MCX gold, the ₹1.39 lakh level is being watched as an important support zone. A sustained move below that level could increase selling pressure. On the other hand, prices could regain momentum if they move towards and break the ₹1.47 lakh-₹1.49 lakh range.
Silver has also seen considerable movement. MCX silver was trading near ₹2,17,010 per kg in early Thursday trade. International silver prices have remained sensitive to both investment demand and industrial activity because the metal is widely used in sectors such as electronics, solar equipment and manufacturing.
The ₹2.10 lakh level is being watched as an important support for MCX silver. If prices remain above this zone, buying interest could return during declines. A sustained move higher could bring the ₹2.30 lakh level into focus, while a stronger breakout could open the way towards ₹2.38 lakh.
Retail gold prices also remained high across major Indian cities on Thursday.
In New Delhi, 24-carat gold was quoted at around ₹1,42,170 per 10 grams, while 22-carat gold was around ₹1,30,323. The price of 999-purity silver stood at approximately ₹2,16,040 per kg.
In Mumbai, 24-carat gold was around ₹1,42,420 per 10 grams and 22-carat gold was around ₹1,30,552. Silver was quoted at approximately ₹2,16,410 per kg.
Kolkata recorded a 24-carat gold price of around ₹1,42,360 per 10 grams, while 22-carat gold was around ₹1,30,497. Silver was priced at nearly ₹2,16,390 per kg.
Rates can differ between cities and jewellery shops because of local taxes, transportation costs, dealer margins and other charges. The final amount paid by a jewellery buyer can also be higher because of GST and making charges.
For consumers, the current gold price trend presents a mixed picture. Prices remain high, but the recent fluctuations show that the market is not moving in one direction. Investors and buyers are therefore keeping a close watch on global developments before making fresh purchases.
The US dollar will remain another important factor. A stronger dollar generally makes gold more expensive for buyers holding other currencies, which can weigh on international demand. A weaker dollar, on the other hand, can make bullion more attractive and support prices.
Crude oil prices and global equity markets could also influence precious metals. A sharp rise in oil prices could revive inflation concerns, while a fall in equities could encourage investors to move towards traditional safe-haven assets.
For now, gold and silver are caught between two competing forces. Geopolitical uncertainty and demand for safe-haven assets are supporting prices, while higher bond yields and uncertainty around US monetary policy are limiting gains.
The coming sessions could therefore remain volatile. Traders will closely track US economic data, Federal Reserve signals, currency movements and geopolitical developments for direction. For Indian buyers, meanwhile, gold and silver prices are likely to remain sensitive to both international trends and movements in the rupee.