After nearly two months of relentless gains, gold and silver prices are showing their first real signs of fatigue. On Friday, both precious metals slipped marginally in early trade, as profit-taking set in after a record-breaking run.
The is improving, the US dollar is strengthening, and investors are reassessing their safe-haven bets.
The correction follows what’s been a remarkable nine-week stretch for bullion—a period driven by persistent inflation worries, rate-cut expectations, and geopolitical instability.
With global bond yields easing and central banks hoarding gold, the rally looked unstoppable. But stretched valuations and a stronger dollar index have started to chip away at momentum.
On the Multi Commodity Exchange (MCX), December gold futures were trading around Rs 1.23 lakh per 10 grams in early Friday trade, while silver hovered around Rs 1.47 lah per kg.
Commodity experts say the move could mark the end of the metal’s immediate uptrend, though not necessarily the broader bull cycle. Darshan Desai, CEO of Aspect Bullion & Refinery, said gold prices appear set to “break their nine-week winning streak after a sharp decline from recent highs.”
He attributed the dip to investors booking profits amid “stretched valuations, renewed optimism over a potential US-China trade deal, and a stronger US dollar.”
Desai added that the market’s attention now turns to upcoming data releases and geopolitical developments, including the US Consumer Price Index (CPI), the status of the US government shutdown, and next week’s scheduled meeting between Presidents Trump and Xi Jinping.
A successful trade agreement between the two nations, he said, could put “additional downward pressure on gold prices,” while any escalation in US-Russia tensions could help “support prices at lower levels.”
Rahul Kalantri, VP Commodities at Mehta Equities Ltd, pointed out that after witnessing their steepest single-day decline in over six years, gold prices are .
“The rebound is supported by lingering US–China trade tensions and renewed geopolitical risks following fresh sanctions on Russia,” he said.
Kalantri also noted that traders are positioning ahead of potential Federal Reserve rate cuts, with markets now pricing in two reductions by year-end.
He pegged technical levels for gold at support of $4,055–4,005 and resistance of $4,135–4,160. In Indian rupee terms, gold has support at Rs 1,23,670–1,22,980 and resistance around Rs 1,24,950–1,25,800.
Silver, meanwhile, has support at Rs 1,46,850–1,45,150 and resistance at Rs 1,49,850.
For investors, the next few sessions will be crucial. A softer-than-expected US CPI print could revive hopes of faster rate cuts, giving gold another leg up. But if inflation stays sticky and the dollar continues to strengthen, the metal could face more downside pressure.
In short, the shine hasn’t faded entirely, but it’s definitely being tested. After an overheated rally, the bullion rally is cooling off, and the smart money is watching whether this pause turns into a deeper correction or simply a healthy breather in a longer-term uptrend.
(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.)