Gold prices remained firm on Thursday as MCX gold futures traded higher in early trade, while silver futures edged marginally lower amid cautious investor sentiment. Despite mixed movement in the futures market, retail bullion prices across major Indian cities remained elevated, reflecting continued demand for precious metals as investors tracked global economic developments and interest rate expectations.
On the Multi Commodity Exchange (MCX), gold futures were trading 0.31% higher at ₹1,41,220 per 10 grams on 17 July. Meanwhile, MCX silver futures slipped 0.04% to ₹2,15,950 per kilogram at around 9:13 am, indicating mild profit booking after the metal’s recent rally.
The rise in MCX gold prices came even as physical bullion rates remained largely stable across the country. Analysts said domestic gold futures continued to mirror global trends, with safe-haven demand supporting prices amid uncertainty over the global economic outlook, inflation concerns and expectations surrounding future interest rate decisions by major central banks.
According to the latest retail bullion rates, 24-carat gold was priced at ₹1,43,430 per 10 grams in Delhi, while 22-carat gold stood at ₹1,31,490 per 10 grams. In Mumbai and Kolkata, 24-carat gold was retailing at ₹1,43,280 per 10 grams, while 22-carat gold was priced at ₹1,31,340 per 10 grams.
Jewellers said customer enquiries have remained healthy even with gold trading at record-high levels. While some buyers are delaying large jewellery purchases in anticipation of a correction, demand for lightweight ornaments, gold coins and bars continues to remain steady, particularly among long-term investors and those preparing for the upcoming festive and wedding season.
For now, the rise in MCX gold to ₹1,41,220 per 10 grams, alongside stable retail gold prices of ₹1,43,430 per 10 grams in Delhi and ₹1,43,280 per 10 grams in Mumbai and Kolkata, reflects the resilience of the bullion market. Even as MCX silver eased marginally to ₹2,15,950 per kilogram, retail silver prices held steady at ₹2,34,900 per kilogram, underscoring continued investor confidence in precious metals amid an uncertain global environment.
Market participants believe the rally in gold prices is being driven by continued demand for safe-haven assets as global uncertainties persist. Concerns over geopolitical tensions, trade developments and the future path of US interest rates have encouraged investors to maintain exposure to bullion.
International gold prices have also remained supported by expectations that the US Federal Reserve could adopt a more accommodative monetary policy later this year. Lower interest rates generally improve the attractiveness of non-yielding assets such as gold, while movements in the US dollar and Treasury yields continue to influence bullion prices globally.
Although MCX silver futures witnessed a slight decline during the session, analysts remain optimistic about the metal’s long-term prospects. Apart from its role as a safe-haven investment, silver enjoys robust industrial demand from sectors such as solar energy, electric vehicles, electronics and semiconductor manufacturing.
Experts believe silver could continue to outperform over the longer term because of its growing industrial applications, although its prices are expected to remain more volatile than gold. Investors are therefore advised to maintain a balanced allocation between gold and silver depending on their investment objectives and risk appetite.
Financial advisers recommend avoiding investments based solely on short-term price fluctuations. Instead, they suggest accumulating gold gradually through exchange-traded funds (ETFs), sovereign gold bonds, digital gold or periodic purchases of physical gold to reduce the impact of market volatility.
Jewellers have also advised buyers to purchase only BIS Hallmark-certified jewellery and compare making charges before finalisingGold purchases. Checking purity certification and invoices remains particularly important when bullion prices are trading near record highs.
Going forward, gold prices and silver prices are expected to remain sensitive to global inflation data, central bank commentary, currency movements and geopolitical developments. Domestic demand during the festive season could also influence retail prices if international bullion markets continue to remain firm.