MCX December gold was trading at ₹1.49 lakh per 10 grams, down 0.52%, while December silver was at ₹2.24 lakh per kg, lower by 1.12%.
Prithviraj Kothari, Managing Director, RiddiSiddhi Bullions Ltd., President, India Bullion and Jewellers Association Ltd., and Chairman, Jain International Trade Organisation, said gold and silver have remained under pressure as higher crude prices revive inflation and interest-rate concerns.
He also pointed to geopolitical developments in the West Asia and the market’s focus on upcoming US Federal Reserve signals.
On the technical front, Kothari said gold has support around $4,100 an ounce, while silver has broken below a key technical level, with the next support around $57 an ounce.
Nirpendra Yadav, Senior Research Analyst, Bonanza, said the gold-silver ratio has risen to around 68:1, compared with a long-term average of about 60:1. A higher ratio indicates that gold has outperformed silver, giving silver a relative valuation advantage, although this does not by itself indicate that silver prices will rise immediately.
Yadav said investors should track the direction of the ratio along with silver demand and price momentum rather than use a particular ratio level as a standalone buy or sell signal. He added that gold’s stronger safe-haven and central-bank demand and silver’s greater exposure to industrial demand can keep the ratio elevated for an extended period.
On the domestic outlook, Yadav said the RBI’s 25-basis-point repo rate hike to 5.50% and its shift towards calibrated tightening could act as a near-term headwind for gold and silver. However, the impact may be limited as domestic bullion prices remain more sensitive to international prices, the rupee and global interest-rate expectations.
Gaurav Garg, Head of Research, Lemonn, said gold remained under pressure as the dollar strengthened, while investors awaited the US Federal Reserve’s meeting minutes for clues on the future rate path. He added that silver continued to show greater volatility, while crude oil remained elevated amid geopolitical and supply concerns.
Darshan Desai, CEO, Aspect Bullion & Refinery, said higher interest rates could weigh on gold, although the metal could continue to attract demand as a hedge against inflation and uncertainty. He added that physical bullion demand in India remains price-sensitive, with consumers and jewellers taking a measured approach despite the ongoing festive and wedding season.
Vikram Subburaj, CEO, Giottus.com, said, US Treasury yields, the dollar and the Fed’s policy outlook remain key factors to watch.