Gold and silver prices in India are rising again after last week’s decline. Weakness in the US dollar, renewed global economic uncertainties, and the ongoing US-China trade tensions have boosted investor interest in safe-haven assets. With the Federal Reserve’s policy decision approaching, market expectations of unchanged interest rates could further support the prices of gold and silver.
Augmont, a leading Indian integrated precious metals company headquartered in Maharashtra, has highlighted a renewed investor interest in gold and silver as global uncertainties push safe-haven assets higher. Following a steep decline last week, both metals witnessed a strong rebound on Monday, with gold rising by over Rs 2,000 per 10 grams.
Gold prices surged to Rs 96,070 for 10 grams of 24-carat gold, climbing back from a recent low of Rs 93,237. In the international market, gold is now trading at $3,357 per ounce, recovering from its recent drop after touching an all-time high of $3,500.
Silver prices also showed positive momentum, closing 1% higher at $32.40 per ounce and trading 1.67% higher on Tuesday. The metal remains below its recent peak of $34.11 reached on March 23, 2025.
The price movement is largely attributed to the weakening of the US dollar and ongoing concerns surrounding US-China trade relations. US President Donald Trump recently confirmed no talks are scheduled with Chinese leadership this week, despite suggesting a possible reduction in tariffs to encourage trade.
China, while open to discussions, insists the United States must first remove unilateral trade measures. This standoff has further strained global economic sentiment, benefiting traditional safe-haven assets like gold and silver.
In addition, all eyes are on the US Federal Reserve’s policy meeting scheduled for May 7, 2025. While the Fed is widely expected to maintain interest rates, a dovish tone from Chair Jerome Powell could add to the bullish trend in precious metals.
Dr. Renisha Chainani, Head of Research at Augmont, stated that gold is expected to consolidate between $3,210 (~Rs 92,000) and $3,380 (~Rs 96,000), while silver is likely to move between $32 (~Rs 93,500) and $34 (~Rs 98,500). Any breakout from these levels could set the direction for future prices.
With the gold-silver ratio currently at 101:1, well above the historical average of 70:1, analysts suggest silver may have more room for upside if global economic conditions remain volatile.
Investors are advised to watch upcoming developments in global trade and monetary policy closely, as these factors continue to drive momentum in the precious metals market.
