Gold and silver prices after hitting record highs earlier this month, as investors booked profits and shifted focus toward equities amid easing geopolitical tensions and optimism over US–India trade developments.
On the MCX at 11:36 am, December gold futures were trading at Rs 1,23,645 per 10 grams, while silver futures hovered around Rs 1,23,422 per kilogram.
Earlier this week, gold reached $4,381 per ounce and silver touched $54.5 per ounce, marking nearly a 10% correction for both metals in just a few sessions.
Rahul Kalantri, VP Commodities at Mehta Equities Ltd, said the correction reflects a rotation toward risk assets, easing seasonal demand in India, and optimism around improving US–India trade relations.
“Gold and silver prices stabilised around $4,050 and $48 per ounce after a sharp two-day fall as traders booked profits from record highs. The pullback reflects optimism over trade developments and reduced safe-haven demand,” he explained.
Global factors are also contributing to the decline. A stronger US dollar, signs of progress in US-China trade talks, and easing geopolitical risks have reduced gold and silver’s safe-haven appeal.
Sugandha Sachdeva, Founder of SS WealthStreet, added, “Profit-taking after record highs, along with improving global conditions, has led to this correction. Gold prices have fallen nearly 10% from $43.80 per ounce, while silver has similarly corrected from $54.5 per ounce.”
Despite the short-term pullback, analysts maintain a bullish long-term outlook.
Gold has surged more than 65% this year due to central bank buying, geopolitical uncertainties, and expectations of US Federal Reserve rate cuts. Support levels for gold are seen at $4,020–$3,975 per ounce, with resistance at $4,125–$4,170, while silver has support at $47.85–$47.40 and resistance at $48.75–$49.30.
In rupee terms, gold has support at Rs 1,21,070–1,20,580 and resistance at Rs 1,22,350–1,23,000, while silver’s support and resistance levels are Rs 1,44,350–1,43,450 and Rs 1,46,850–1,47,780, respectively.
Sachdeva added that the c.
“We expect gradual recovery for gold at lower levels, possibly moving toward Rs 1,25,000–1,27,000. Silver’s floor is expected around Rs 1,45,000, with upside capped near Rs 1,67,000. Both metals may see sideways movement after strong gains this year,” she said.
Investors are now closely watching the upcoming US CPI report, which could influence Federal Reserve interest rate decisions and determine whether gold and silver stabilise or face further volatility in the near term.
With domestic demand easing, profit booking from record highs, and a stronger dollar impacting safe-haven appeal, gold and silver prices are likely to consolidate before the next major move, while long-term trends remain favourable for investors tracking precious metals.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)