The bull run in precious metals shows no signs of slowing, with gold prices surging over 2,300 rupees this week and silver decisively breaching the 2.42 lakh per kg level. This impressive weekly performance has captivated markets from Delhi to Dubai, as traders and households reassess their exposure to these timeless stores of value. Spot prices for gold have stabilized at elevated plateaus, with incremental gains adding up to a substantial windfall for early buyers.
Silver’s ascent has been equally compelling, propelled by its dual role as both an investment vehicle and industrial commodity. White metal futures on the Multi Commodity Exchange touched fresh peaks, reflecting heightened speculative interest. Key drivers include a cocktail of macroeconomic pressures: sticky global inflation, anticipated rate cuts by major central banks, and supply disruptions from top mining nations like Peru and Mexico.
In India, the timing couldn’t be more poignant, with Dhanteras and Diwali just around the corner. Retail demand has spiked, leading to empty showcases in major jewelry hubs. ‘Consumers are viewing high prices as a buying opportunity rather than a deterrent,’ noted an analyst from the India Bullion and Jewellers Association. Government policies on import duties remain under scrutiny, potentially influencing future trajectories.
Forecasts suggest sustained upward pressure, though overbought technical indicators hint at possible pullbacks. Monitoring tools like the US dollar index and ETF flows will be crucial. For portfolio managers, this rally reinforces the case for strategic allocations to gold and silver in uncertain times.