Gold and silver are looking to shine again as prices reached their highest level in more than a week. On Monday, the gold price in India gained over Rs 2,000 per ten gram.
Gold and silver, the two precious metals that have gained significant attention from investors, are looking to recover the lost ground. Gold saw a sharp decline after reaching a record high of $3,500 in the international market and Rs 1 lakh per ten grams in the Indian market.
From an all-time high of $3,500, gold went below $3,300 and has bounced back from the recent low of $3,237 to currently trade at $3,357. The gold rate today in India is Rs 96,070 for 10 grams of 24-carat gold.
Silver prices also rose and closed 1% higher at around $32.40 per ounce on Monday. Silver is currently at $33 below the recent high of $34.11 created on March 23, 2025.
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Weakness in dollar is reflecting in the gains in the two precious metals. The US-China trade war doesn’t look to go away anytime soon.
The US currency has weakened amid ongoing concerns about US-China economic ties. President Donald Trump said he had no plans to speak with his Chinese counterpart this week, but he has indicated a readiness to decrease tariffs on Chinese imports to increase trade.
Last week, China hinted that it may consider opening trade discussions with the United States, but reiterated that Washington must first eliminate all unilateral measures.
Investors are also looking ahead to tomorrow’s Federal Reserve policy meeting when interest rates are widely expected to remain unchanged. However, any dovish stance by Powell at the press conference is likely to boost gold prices. When interest rates fall, investors resort to gold, especially given the current economic scenario.
Overall, the combination of a weakened dollar and global instability has boosted safe-haven assets such as gold and silver.
On Tuesday, silver is up over 1.67% while gold trades 0.67% higher than the previous day’s close. The gold-silver ratio has increased to 101:1, well beyond the average of 70:1. A reduction in the US-China trade conflict and an increase in economic activity might see a silver breakout from its current levels.
“Gold prices retraced to the $3210 level last week, a 50% Fibonacci retracement of its rally from $2970 (~Rs 86650) to $3510(~Rs 99350). Now prices are expected to consolidate between $3210(~Rs 92000) to $3380(~Rs 96000), either side breakout or breakdown will set a new direction for the prices for the coming days.
Silver prices are expected to consolidate between $32 (~Rs 93500) and $34(~Rs 98500),” says Dr. Renisha Chainani, Head – Research at Augmont.
The headwinds for both gold and silver are de-escalation of trade war, stronger dollar, and rising equity market but potential recovery could be sparked by stalling of trade deals or labor market weakness.
Also Read: Gold-to-silver ratio signals a bullish outlook for silver as gold retreats from all-time high level
