BUSINESS

Gold Price Today Wobbles as Dollar Strengthens; Silver Holds Firm on Industrial Demand: What’s Next for Precious Metals?

Gold prices remained volatile on Friday, struggling to find direction after the U.S. Federal Reserve’s hawkish tone boosted the dollar and dented investor confidence. Silver, meanwhile, held steady, supported by robust industrial demand and short-covering activity.

Spot gold traded around $4,004 per ounce in early Asian hours, down slightly after a brief rebound on Thursday. The U.S. dollar index climbed to a three-month high following Fed Chair Jerome Powell’s remarks that tempered expectations of another rate cut in December — a move that pressured gold prices.

Despite the pullback, bullion remains on track for its third straight monthly gain, underpinned by strong central bank purchases, including 220 tonnes of gold in Q3, led by Kazakhstan and Brazil.

Gold and Silver Prices in India

As of 9:42 am, December gold futures traded just below ₹1.21 lakh per 10 grams, while silver futures hovered slightly above ₹1.48 lakh per kilogram on the MCX.

According to Rahul Kalantri, Vice President (Commodities) at Mehta Equities, “The initial weakness in gold and silver was a direct reaction to Powell’s hawkish comments. However, both metals recovered as the ECB’s decision to hold rates may limit further dollar gains, supporting precious metals near term.”

Gold and Silver Price Outlook

Kalantri expects gold to find support between $3,970–$3,940 and resistance at $4,045–$4,075. Silver may see support at $48.25–$48.60 and resistance around $49.55–$50.00.

In the domestic market, gold may attract buyers near ₹1,20,880–₹1,21,470, while facing resistance at ₹1,21,990–₹1,22,500. Silver is expected to trade within ₹1,46,750–₹1,47,450 on the downside and ₹1,49,740–₹1,50,880 on the upside.

Jateen Trivedi of LKP Securities added that the Fed’s recent rate cut did little to spark fresh bullish momentum as markets had already priced it in. “Gold traded mildly higher at ₹1,21,130 per 10 grams, up 0.38%, but the sentiment remains cautious,” he said.

Geopolitics and Demand Dynamics

Experts say global geopolitical tensions and hints from U.S. President Trump about potential nuclear testing are keeping risk sentiment elevated. “Investors tend to buy gold during uncertain times, and right now, there’s enough global shakiness to keep gold supported,” Trivedi noted.

He expects gold to fluctuate between ₹1,18,000 and ₹1,24,500 in the short term, suggesting a range-bound trend unless new triggers emerge.

Silver continues to show relative strength, buoyed by its dual role as a precious and industrial metal. Demand from sectors like electronics and solar energy is providing steady support, helping silver outperform gold in recent sessions.

Bottom Line

Gold remains volatile but supported by central bank buying and safe-haven demand, while silver benefits from industrial resilience. The next key triggers for precious metals will likely be the Fed’s December policy signals and any major geopolitical developments.