Gold and silver prices witnessed volatility in recent sessions after scaling record highs in the domestic market. Gold futures on the Multi Commodity Exchange (MCX) recently approached ₹2 lakh per 10 grams, while silver surged past ₹4 lakh per kilogram before witnessing profit-booking.
The pullback comes amid a firmer US dollar and shifting expectations around the US Federal Reserve’s rate trajectory. Stronger economic data from the US reduced immediate hopes of aggressive rate cuts, leading to some pressure on bullion prices. Market participants also trimmed positions after the sharp rally seen over the past few weeks.
Despite near-term fluctuations, analysts maintain a constructive outlook on precious metals. According to market experts, gold and silver could be entering a 3–5 year structural bull cycle supported by macroeconomic and sectoral fundamentals.
Central bank buying remains a key pillar for gold. Several global central banks continue to add to their gold reserves as part of diversification strategies, reinforcing long-term demand. Additionally, persistent geopolitical tensions and inflationary risks are sustaining gold’s appeal as a safe-haven asset.
Silver is benefiting from a dual demand dynamic. Alongside its role as a store of value, silver demand is being driven by industrial applications, particularly in renewable energy, electric vehicles, and electronics manufacturing. The expansion of clean energy infrastructure is expected to support medium- to long-term consumption trends.
Investment advisors recommend a disciplined approach. Rather than chasing elevated levels, investors are advised to accumulate on corrections. A strategic allocation of 5–10% of portfolio assets in precious metals is broadly considered prudent for diversification. Portfolios with disproportionately high exposure may warrant rebalancing.
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