Gold-Silver Outlook: Gold and silver have been trading in a consolidation phase for several weeks now. The biggest question on investors’ minds is whether a fresh rally is on the horizon or if the downtrend will persist. According to commodity experts, the ₹1.40 lakh level for gold continues to serve as a strong support. Investors are advised to steer clear of panic selling and instead adopt a staggered investment approach with a 3-4 month outlook.
Gold-Silver
Experts believe the market has largely grown accustomed to geopolitical news. Previously, crude oil and gold prices tended to move in tandem, but the market scenario has now shifted. The impact of Ukraine-Russia and US-Iran tensions has also diminished compared to earlier periods. The market’s primary focus has now shifted to US inflation data, Fed policy, and the dollar index. These factors will determine the next direction for gold and silver.
Limited Impact of RBI Policy on Gold
The RBI policy is expected to have a limited direct impact on gold. However, the movement of the rupee will need close monitoring. Currently, the rupee is trading in the 94-97 range, and unless this band breaks, the likelihood of any major trend is considered low. Meanwhile, bond yields, the dollar index, and crude oil will also play a significant role in shaping gold and silver movements.
Support from Central Bank Gold Buying
According to experts, discussions around de-dollarization, consistent gold buying by central banks, and gold-backed currency concepts are positive indicators for gold in the long term. Countries such as China, India, and Poland continue to expand their gold reserves, painting a strong long-term outlook. Moreover, despite Russia selling gold, global demand continues to outpace supply, keeping the possibility of a major decline low for now.
Disclaimer: The views and suggestions expressed here are solely those of individual analysts or institutions. All information is provided for informational and educational purposes only. Investors must independently verify all details with licensed financial advisors before making any investment decisions.
