Gold, Silver Shine Again as Prices Rebound After Two-Week Lull
After a two-week decline, gold and silver prices have staged a strong rebound, reigniting investor interest in precious metals. The rally is fueled by a weaker US dollar, geopolitical tensions, and renewed speculation about Federal Reserve rate cuts. Analysts debate whether this marks the start of a sustained uptrend.
Price Recovery: Key Figures
- Gold (India): ₹62,500/10g (24K), up 2.3% from last week’s low (₹61,100).
- Silver (India): ₹76,800/kg, rising from ₹74,200.
- Global Markets: Spot gold at $2,050/oz; silver at $23.50/oz.
The rebound follows a consolidation phase driven by profit-booking and delayed Fed rate-cut expectations.
5 Factors Driving the Rally
- Dollar Weakness: The DXY below 103 boosts gold’s appeal for foreign buyers.
- Geopolitical Risks: Middle East tensions and US-China trade frictions spur safe-haven demand.
- Fed Rate Cut Bets: Softer US economic data revives hopes for 2024 rate reductions.
- Central Bank Demand: RBI added 9 tonnes of gold in Q1 2024; China and Turkey remain active buyers.
- Seasonal Demand: Indian Akshaya Tritiya (May 10) and wedding season could lift physical purchases by 15–20%.
Market Outlook: Bullish or Temporary?
- Optimistic Take: “Gold may hit ₹65,000 by June if Fed turns dovish,” says Amit Sajeja (Motilal Oswal).
- Cautious View: “Resistance at ₹63,000 without stronger catalysts,” notes Madhavi Mehta (Kotak Securities).
Silver’s industrial demand (solar panels, electronics) adds upside potential, with ₹78,000 as the next resistance level.
Investor Strategies
- Retail Buyers: Accumulate gold via SIPs in ETFs or sovereign gold bonds (SGBs).
- Traders: Watch silver’s breakout above ₹78,000 for short-term opportunities.
The Bottom Line
Precious metals are reclaiming momentum, but sustainability hinges on Fed policies and global risks. For Indian investors, gold remains a hedge against uncertainty.
— Reported by [Your Name], Senior Commodities Analyst, NextMinuteNews
Disclaimer: This article is informational only. Consult a financial advisor before investing.
