Gold prices maintained a steady trend in the national capital on Thursday, holding at ₹1.46 lakh per 10 grams. According to data provided by the All India Sarafa Association, the yellow metal’s price remained unchanged from the previous trading session as market participants, including jewellers and retailers, continued to exercise restraint. The prevailing high price levels have discouraged fresh buying activity among local traders, who remain cautious amid the ongoing market volatility.
While gold saw little movement, the silver market experienced a notable uptick. Prices for the white metal rose by ₹500, closing at ₹1,98,500 per kilogram, inclusive of all relevant taxes. This marks a departure from Wednesday’s closing position, where silver had remained stagnant at ₹1.98 lakh per kilogram.
Market analysts suggest that domestic gold price movements are largely mirroring the range-bound performance observed in international markets, which have been reacting to a variety of mixed signals. Saumil Gandhi, a Senior Analyst of Commodities at HDFC Securities, noted that domestic trends are currently being shaped by these global fluctuations. The prevailing climate is heavily influenced by the hawkish stance of the United States Federal Reserve, which continues to impact investor sentiment despite some downward pressure from declining US Treasury yields and shifting crude oil prices.
The international context remains complex for precious metals. Spot gold witnessed a decline in global trade, falling by USD 49.38, or 1.21 per cent, to reach USD 4,018.08 per ounce. Similarly, silver prices experienced a downward trend in international markets, retreating by 3 per cent to settle at USD 52.41 per ounce. These global shifts are critical in understanding the domestic pricing structure, as Indian markets remain highly sensitive to movements in the international bullion exchange.
Vedika Narvekar, a Research Analyst for Commodities and Currencies at Anand Rathi Share and Stock Brokers Ltd, observed that gold continues to face significant pressure. The metal has been hovering around the USD 4,024 per ounce mark in global trade. This sustained pressure is largely attributed to the Federal Reserve’s current policy outlook and persistent inflation concerns, which have strengthened market expectations regarding further monetary policy tightening.
The broader economic environment is characterized by multiple factors that contribute to this volatility. Firm crude oil prices, combined with uncertainty surrounding the Federal Reserve's future policy trajectory and liquidations in the equity markets, have created a challenging environment for investors. However, analysts point out that there are still underlying factors providing support to gold prices. Specifically, continued central bank purchasing and ongoing geopolitical risks across the globe may act as a buffer against further significant declines in the near term.
For domestic consumers and investors, the current trend reflects a period of wait-and-watch. As jewellers remain cautious about inventory management at these high price points, the market is expected to remain sensitive to any new data points emerging from global financial institutions. Traders will likely continue to monitor the interplay between domestic retail demand and the broader international macroeconomic narrative to gauge the direction of precious metal prices in the coming sessions.
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