New Delhi, September 27: Indian bullion prices experienced a slight dip but maintained their overall bullish momentum this week, driven by uncertainties surrounding the US Federal Reserve’s policy direction.
The price of 24-carat gold (10 grams) began the week at Rs 1,13,498 on Monday, climbed to a notable high of Rs 1,14,044 on Tuesday, and ended the week at Rs 1,13,260, according to the India Bullion and Jewellers Association (IBJA).
Gold’s safe-haven appeal remained intact, bolstered by global trade tensions, a weakening rupee, continued central bank purchases, and the uncertain trajectory of US Federal Reserve policies.
Silver also witnessed strong buyer interest, fueled by robust industrial demand and supply constraints. The price of silver closed at Rs 1,37,467 per kilogram on Friday, as per IBJA data.
"Gold prices held steady around Rs 1,14,000, with a marginal rise of Rs 130, supported by a stable Comex Gold market. The dollar remained slightly positive while the rupee stayed flat at 88.71," stated Jateen Trivedi, Vice President of Research at LKP Securities.
"Despite the higher-than-expected US GDP data, which prompted some profit booking, gold quickly regained momentum, preserving its bullish outlook. The overall trend remains positive, with support at Rs 1,12,500 and resistance at Rs 1,15,000," Trivedi added.
Looking ahead, gold is expected to trade within the range of Rs 1,07,500 to Rs 1,11,000.
Over the past year, gold has outperformed Indian equities for the fourth consecutive Diwali-to-Diwali cycle, continuing a pattern where the precious metal has outpaced equities in seven of the last eight years. Silver has also outperformed Indian equities for the third consecutive year, driven by rising industrial demand, particularly from sectors like solar panel manufacturing, semiconductors, and electric vehicles.
Analysts suggest that bullion’s performance remains supported by steady central bank buying and sustained investments in exchange-traded funds (ETFs). However, comments from the US Federal Reserve Chairman on inflation, labor markets, and potential future rate cuts could temper further gains for gold and silver.
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