Gold and silver prices saw a strong jump on Thursday, tracking global uncertainty and renewed safe-haven demand amid escalating tensions in West Asia. On the Multi Commodity Exchange (MCX), gold futures rose by Rs 3,012 (2.16%) to Rs 1,42,505 per 10 grams, while silver jumped Rs 6,417 (2.92%) to Rs 2,26,291 per kg.
Despite the sharp move, experts say the broader trend in precious metals remains uncertain, and investors should avoid rushing into fresh buying.
Gold and Silver Under Pressure Despite Tensions
Dr Renisha Chainani, Head of Research at Augmont, noted that gold and silver have not seen a sustained rally even as geopolitical tensions remain high.
“Gold and Silver have retreated as geopolitical tensions intensified after U.S. President Donald Trump warned of stronger military action against Iran following the rejection of peace talks,” she said.
She added that even though there was some relief after a temporary pause on targeting energy infrastructure, the lack of a clear resolution is continuing to impact sentiment.
“The absence of a clear resolution continues to weigh on sentiment and cap upside in bullion.”
| Metal | Price Movement (March 26) |
|---|---|
| Gold (MCX) | ↑ Rs 3,012 (2.16%) to Rs 1,42,505/10g |
| Silver (MCX) | ↑ Rs 6,417 (2.92%) to Rs 2,26,291/kg |
Mixed Macroeconomic Signals
Dr. Chainani pointed out that the macroeconomic environment is currently mixed, limiting the upside in gold and silver.
“The macro backdrop remains mixed. While prolonged conflict raises inflation risks, it also increases the probability of an economic slowdown in the US,” she said.
She noted that global markets are revising growth expectations lower while increasing concerns around inflation and recession. This creates a complex environment for gold prices.
“This creates a complex environment for gold—where inflation support is offset by elevated real yields and cautious monetary policy expectations.”
Gold and Silver Likely to Remain Range-Bound
On the price outlook, Dr. Chainani said both metals are currently in a consolidation phase and not showing signs of a breakout.
| Metal | Expected Trading Range |
|---|---|
| Gold (International) | $4,350 to $4,600 |
| Gold (Domestic) | Rs 1,39,000 to Rs 1,45,000 per 10g |
| Silver (International) | $66 to $75 |
| Silver (Domestic) | Rs 2,19,000 to Rs 2,38,000 per kg |
“Gold prices have corrected from recent highs but are finding strong support near $4,350 likely to trade in a defined range of $4,350 to $4,600,” she said.
Silver is also expected to follow a similar trend. “Silver has also retreated and is holding above key support at $66 expected to consolidate within a broad range of $66 to $75.”
Should You Buy Gold and Silver Now?
The expert view suggests this is not a breakout phase for gold and silver. Prices are moving within a band, and the direction remains unclear due to ongoing global uncertainty.
| Investor Type | Recommended Strategy |
|---|---|
| Short-term Investors | Avoid aggressive buying; watch for clear triggers |
| Long-term Investors | Consider gradual, systematic buying rather than lump sum |
| All Investors | Stay cautious; volatility expected to continue |
The sharp rise in prices may attract investors, but experts suggest taking a cautious approach. Since both metals are trading in a range and not in a strong uptrend, aggressive buying at current levels may carry risks.
A more balanced strategy could be to invest gradually instead of putting in large amounts at once. This approach can help manage price fluctuations in a volatile market.
For long-term investors, gold and silver continue to play a role as safe-haven assets. However, in the short term, their movement is likely to remain range-bound, with no clear breakout in sight.
