Gold Shines On Safe-Haven Demand, Silver Sparkles With Industrial Push

New Delhi: Indian gold prices slipped slightly this week but stayed strong overall. According to the India Bullion and Jewellers Association (IBJA), 24-carat gold (10 grams) started at Rs 1,13,498 on Monday, touched a high of Rs 1,14,044 on Tuesday, and closed at Rs 1,13,260 on Friday.

Why gold remains attractive

The yellow metal continues to be a safe choice for investors because of global trade tensions, a weak rupee, steady central bank buying, and uncertainty over the US Federal Reserve’s next move.

Analyst view

“Gold prices held firm at Rs 1,14,000, with small gains of Rs 130 as Comex Gold stayed steady,” said Jateen Trivedi, VP Research, LKP Securities. He added that gold is likely to trade between Rs 1,12,500 and Rs 1,15,000 in the short term, with broader support levels around Rs 1,07,500 to Rs 1,11,000.

Silver in demand from industries

Silver also attracted strong interest, closing at Rs 1,37,467 per kilogram on Friday. Its demand is being fuelled by industries such as solar panels, semiconductors, and electric vehicles, along with supply constraints.

Gold and silver vs equities

Gold has beaten Indian equities for the fourth Diwali-to-Diwali cycle in a row, and in seven out of the last eight years. Silver, too, has outperformed equities for the third straight year.

What’s ahead

Experts say central bank purchases and ETF inflows will keep supporting bullion. However, US Fed’s cautious stance on inflation, jobs, and rate cuts may limit gains in the near term.