Gold, Silver Outlook: Gold and silver prices in India continued to edge lower on Friday, reflecting broader weakness in global bullion markets. Both metals are poised to end the week in the red as geopolitical tensions and macroeconomic uncertainties weigh on investor sentiment. As per data from the Indian Bullion and Jewellers Association, gold prices for 24-carat stood at Rs 1,51,479 at Friday close, with markets shut on Saturday and Sunday, these rates will remain applicable. At the same time, futures prices on the Multi Commodity Exchange edged up slightly by 0.07 per cent, or Rs 100, to close at Rs 1,52,799 per 10 grams on Friday.
Meanwhile, MCX silver ended the day at Rs 2,44,877, up Rs 3,364.00 or 1.39 per cent.
In international markets, bullion showed some recovery on Friday but remained under pressure overall. Spot gold rose 0.6 per cent to $4,721.15 per ounce after gaining more than 1 per cent earlier in the session, though it is still down over 2 per cent for the week. Silver followed a similar trend, climbing 1.4 per cent to $76.49 per ounce, but holding onto a weekly decline of 3.37 per cent.
Since the escalation of the US–Iran conflict, gold prices have retreated by over 10 per cent, while silver has recorded an even steeper drop of around 18 per cent, highlighting the broader pressure on precious metals.
Why Are Bullion Prices Remain Muted?
The sustained weakness in gold and silver can largely be attributed to rising crude oil prices and a stronger US dollar. The ongoing tensions between the US and Iran have pushed oil prices higher, fuelling inflation concerns and reinforcing expectations that interest rates may remain elevated for longer.
The situation has now reached a standstill, with the Strait of Hormuz still largely shut despite reduced military escalation. Market sentiment has been particularly sensitive to statements from Donald Trump, which have alternated between optimism over a resolution and warnings of further conflict.
Diplomatic developments have also added to the uncertainty. Iran’s Foreign Minister Abbas Araqchi was expected to visit Islamabad to explore avenues for reviving talks with the United States, although no direct meeting was scheduled. Separately, Israel and Lebanon agreed to extend their ceasefire by three weeks.
Outlook: Should Investors Buy The Dip?
Market experts suggest that near-term pressure may persist, but the longer-term outlook remains nuanced. Kaynat Chainwala, AVP – Commodity Research, Kotak Securities, said in a Mint report that gold and silver are under near-term pressure primarily because elevated crude oil, sustained by Strait of Hormuz disruptions and the US-Iran ceasefire uncertainty, is reinforcing the case for prolonged higher interest rates.
“While near-term volatility may persist due to liquidity pressures and shifting Fed expectations, the medium-term outlook remains supported by geopolitical uncertainty, stagflation risks, and ongoing structural shifts in global reserve allocation. Any price weakness, in that context, reflects cyclical macro pressures rather than a deterioration in underlying fundamentals,” she said.
Ponmudi R, CEO of Enrich Money, noted that gold is currently trading in a consolidation range, with key support around Rs 1,50,000 and resistance near Rs 1,55,500–Rs 1,57,000. He indicated that dips may continue to attract buyers as long as these levels hold. For silver, he observed a weak-to-sideways trend, with support near Rs 2,40,000 and resistance around Rs 2,50,000.
