Gold Prices Consolidate as Geopolitics Meet Economic Factors

Gold and Silver Prices Slip in India as Stronger Dollar and Global Tensions Influence Bullion Market​

Precious Metals Trade Lower in Domestic Market​

Precious metal prices in India moved slightly lower on Thursday as global market pressures weighed on bullion, even as geopolitical uncertainty continued to support safe haven demand.

On the Multi Commodity Exchange, gold futures declined by 0.26 percent to ₹1.61 lakh per 10 grams for 24 carat purity. Silver prices also weakened, falling by 0.63 percent to ₹2.67 lakh per kilogram.

The muted movement in domestic bullion prices reflected global trends where the strengthening US dollar and rising crude oil prices limited gains in gold.

Global Market Trends Weigh on Gold​

In international markets, gold prices edged lower during early Thursday trading. Spot gold dropped about 0.5 percent to around $5,151 per ounce, while US gold futures for April delivery slipped roughly 0.4 percent to about $5,156 per ounce.

The US dollar strengthened by approximately 0.3 percent, making dollar denominated commodities such as gold more expensive for investors holding other currencies. This development reduced fresh buying interest in the global bullion market.

Meanwhile, crude oil prices surged as tensions escalated involving Iran and disruptions emerged around the Strait of Hormuz, a critical route for global energy shipments.

Iran warned that oil prices could potentially rise toward $200 per barrel. At the same time, the International Energy Agency called for a large release of strategic reserves to manage one of the most significant oil supply disruptions since the 1970s.

Rising crude oil prices have increased concerns about renewed global inflation pressures, which has reduced expectations of near term interest rate cuts.

Gold Prices Consolidate Amid Mixed Signals​

Bullion markets are currently navigating a complex environment where geopolitical risks typically support gold demand, while macroeconomic factors such as a stronger US dollar and shifting interest rate expectations limit price gains.

Aksha Kamboj, Vice President of the India Bullion and Jewellers Association and Executive Chairperson of Aspect Global Ventures, said gold is holding steady compared with the previous session as investors remain cautious about their market positions.

She noted that markets are balancing risk sentiment with policy expectations, leading to consolidation in bullion prices at current levels.

Silver Prices Correct After Recent Rally​

Silver witnessed a slightly sharper correction after strong gains in previous sessions. The decline is largely attributed to profit booking by traders following the metal’s recent rally.

Despite the short term correction, silver continues to attract attention in global markets due to its dual role as both an investment asset and an industrial metal, which often leads to greater price volatility compared with gold.

Jewellery Demand Trends Remain Supportive​

Industry participants highlight that fluctuations in gold and silver prices are also influenced by consumer sentiment and broader economic conditions.

Dishi Somani, founder of Dishis Designer Jewellery, said demand for gold remains strong as an investment asset even at elevated price levels.

She also noted that silver is increasingly gaining popularity among younger buyers because of its affordability and its rising use in contemporary jewellery designs.

Key Global Triggers Ahead​

Market participants are closely monitoring several global factors that could influence bullion prices in the coming sessions.

Developments in the Middle East, movements in crude oil prices, and upcoming US economic indicators such as the Personal Consumption Expenditures inflation index are expected to remain key drivers for gold and silver markets.