Daijiworld Media Network - New Delhi
New Delhi, Sep 27: Indian bullion prices ended the week slightly lower but held firm within a bullish trend, as global uncertainty — particularly surrounding the US Federal Reserve's monetary policy — continued to boost demand for safe-haven assets like gold and silver.
According to data from the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold (10 grams) opened the week at Rs 1,13,498 on Monday, peaked at Rs 1,14,044 on Tuesday, and closed at Rs 1,13,260 on Friday. Despite the marginal drop, analysts say the precious metal remains well-supported due to global trade tensions, a weakening rupee, central bank buying, and mixed signals from the Fed.
Silver, meanwhile, saw significant buying interest, buoyed by strong industrial demand and supply constraints. It ended the week at Rs 1,37,467 per kg, continuing its upward momentum thanks to its critical role in high-growth sectors like solar panels, semiconductors, and electric vehicles.
Jateen Trivedi, VP Research Analyst at LKP Securities, noted that gold traded firmly around Rs 1,14,000 despite some profit-booking following stronger-than-expected US GDP data. “Gold quickly recovered and maintained its bullish structure,” he said, citing a key support level at Rs 1,12,500 and resistance at Rs 1,15,000. He expects the broader trading range for gold to remain between Rs 1,07,500 and Rs 1,11,000 in the near term.
For Indian investors, bullion continues to outperform equities. Gold has outshone the stock market for the fourth consecutive Diwali-to-Diwali cycle and has beaten equities in seven of the last eight years. Silver, too, has outperformed equities for three straight years, underscoring its strength as both a precious and industrial metal.
Analysts also pointed to strong central bank gold purchases and continued inflows into exchange-traded funds (ETFs) as additional pillars of support for the bullion market. However, some caution that dovish comments from Fed Chair Jerome Powell on inflation and rate cuts may act as a cap on further gains in the short term.
Still, for now, gold and silver remain firmly in favour, as global economic and policy uncertainties keep investors leaning toward safety and long-term value.