Gold Holds Firm as Silver Plummets Rs 1,500 Amid Rising West Asian Tensions

Gold Holds Firm as Silver Plummets Rs 1,500 Amid Rising West Asian Tensions​

Gold prices maintained their steady stance for a second consecutive session on Thursday, holding firm at Rs 1,46,300 per 10 grams in the national capital. The yellow metal, traded at 99.9 per cent purity, showed resilience despite fluctuating global cues as reported by the All India Sarafa Association.

In contrast, silver faced significant downward pressure, sliding Rs 1,500 to hit an over two-week low of Rs 2,24,500 per kilogram (inclusive of all taxes). This follows Wednesday's closing level of Rs 2,26,000 per kg as the white metal continues its bearish trajectory.

Silver Hits Multi-Week Low Amid Profit Booking​

Silver prices have now declined for the fourth consecutive session, marking a significant drop from recent highs. The metal has fallen Rs 12,500, or 5.3 per cent, in just four sessions from the July 10 level of Rs 2,37,000 per kg.

Market participants attribute this decline to sustained profit-booking and a notable slowdown in industrial buying activity. The white metal was last quoted at similar levels on June 29, when it traded at Rs 2,24,000 per kg.

Geopolitical Tensions and Macroeconomic Drivers​

Analysts suggest that gold is currently trading in a narrow range as investors weigh conflicting signals from the global economy. Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, noted that investors are balancing softer-than-expected US inflation data against escalating geopolitical tensions in West Asia.

Renisha Chainani, Head - Research at Augmont, highlighted that rising oil prices and concerns over Federal Reserve interest rate decisions are impacting the silver market. She noted that the escalating conflict in West Asia has eroded optimism regarding easing inflation.

Global Market Movements and US-Iran Standoff​

On the international stage, spot gold slipped USD 29.54, or nearly 1 per cent, to trade at USD 4,030.84 per ounce. Meanwhile, silver saw a 1.7 per cent decline to reach USD 56.79 per ounce in global markets.

Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, observed that spot gold was trading lower around USD 4,033 per ounce as tensions between the US and Iran remain heightened without significant changes on the ground.

The geopolitical situation remains volatile as the latest skirmish enters its fifth day. US President Donald Trump has threatened continued strikes against Iran unless negotiations resume, though he noted that losses were capped after Iran's chief negotiator, Mohammad Bagher Ghalibaf, indicated diplomacy remains an option.

Key Economic Indicators to Watch​

Market participants are now pivoting toward domestic economic data to gauge the strength of the American economy. According to Gaurav Garg, Research Analyst at Lemonn Markets Desk, investors are awaiting US retail sales data and jobless claims for guidance on the Federal Reserve's interest rate trajectory.