Gold, silver prices in India: Why bullion is moving in a narrow range

Gold and silver prices in India traded largely sideways on March 11, with marginal movements as investors tracked developments in West Asia conflict, global oil prices and expectations around US interest rates.

Gold futures were hovering around ₹1.62 lakh per 10 grams, while silver declined 1.51% to ₹2.73 lakh per kilogram, according to market data.

The precious metals market has remained sensitive to geopolitical developments and macroeconomic signals. Ongoing tensions in the West Asia have supported safe-haven demand for gold, even as a stronger US dollar and rising Treasury yields have capped gains.

Analysts say the metal is currently balancing competing global forces.

“Bullion prices are heavily influenced by competing macro forces and the West Asia conflict, while a stronger US dollar and rising Treasury yields are limiting the upside for gold,” the Augmont report noted.

Global cues drive sentiment

ly, gold edged higher on Wednesday (Mrach 11).

Spot gold rose about 0.2% to $5,202.10 per ounce, while US gold futures for April delivery were slightly lower. Oil prices also slipped below $90 per barrel after the Energy Agency proposed a large release of emergency oil reserves to stabilise markets.

Gold prices have already risen more than 20% so far this year, hitting successive record highs amid geopolitical and economic uncertainty.

Outlook for gold and silver

Near-term price targets remain elevated as global demand for safe-haven assets persists.

According to Augmont’s projections, gold could move toward $5,250 an ounce (around ₹1.63 lakh per 10 grams) and $5,300 an ounce (about ₹1.65 lakh per 10 grams) in the near term.

Silver, which recently touched the $90 per ounce mark, may see its next upside target around $95 an ounce (₹2.85 lakh per kg).

Market participants are now awaiting the release of US inflation data, including the consumer price index and the Personal Consumption Expenditures (PCE) index, which could provide further cues on the Federal Reserve’s policy outlook.

Domestic demand also supports prices

Apart from global factors, domestic demand trends continue to influence bullion prices in India.

“Gold prices in India have been rising in recent months due to global economic shifts and steady domestic demand. Investors often turn to gold during periods of uncertainty, which supports prices,” Piyush Jhunjhunwala, Founder & CEO of Stockify, said.

He added that retail demand during weddings and festive periods also contributes to price strength in the domestic market.

Silver shows higher volatility

Silver, which has both investment and industrial demand, tends to move more sharply than gold.

“Silver is showing stronger buying momentum compared to gold as both investment and industrial sentiment improve, although the metal remains more volatile,” said Aksha Kamboj and executive chairperson at Aspect Global Ventures.

-With Reuters inputs

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Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Readers should consult certified experts before making any investment decisions.