Gold prices went lower on early Thursday trade as the US dollar became stronger and easing global trade worries pressured the yellow metal. On the other hand, silver is holding tight, continuing its recent uptrend, supported by steady industrial demand and investor interest in safe-haven assets.
As of 9:05 AM, MCX Gold (August 5 futures) slipped by 0.30% to ₹97,490 per 10 grams. In contrast, MCX Silver (September 5 futures) edged up 0.10% to ₹1,11,748 per kg. The drop in gold price is connected largely to gains in the US dollar index, which rose 0.20%, making the metal more expensive for holders of other currencies.
Investor sentiment remained cautious after US President Donald Trump denied reports of plans to remove Federal Reserve Chair Jerome Powell, whose term runs until 2026. This development reassured markets and helped make the dollar steady, slightly out shining gold’s image. At the same time, as the fears around US-India trade tariffs got relief, as Trump hints at progress on a trade deal with New Delhi, further cooled safe-haven demand for gold.
Even though there’s short-term pressures, market analysts continue to see a supportive backdrop for gold. Carsten Menke of Julius Baer noted that while safe-haven demand has softened due to less fear of recession, the broader fundamentals for gold remain positive. However, Menke added that gold is currently lacking a fresh trigger to resume its rally, leading to consolidation.
On the technical front, the outlook for gold remains cautiously optimistic. According to Abhilash Koikkara who is Nuvama Professional Clients Group, gold could now rise above the ₹96,500 resistance, suggesting a short-term bullish bias. He sees potential targets at ₹98,500 and even ₹99,800 if momentum continues. The metal’s position above its 9-EMA, alongside a strengthening RSI and MACD crossover, supports the uptrend, provided prices remain above ₹96,500.
Silver, meanwhile, has all the spotlight in recent weeks, touching highs of ₹1,15,000 before cooling off slightly. Analysts believe the metal is benefitting from strong industrial demand, particularly from electric vehicles and renewable energy sectors. Manoj Kumar Jain of Prithvifinmart recommends buying silver on dips near ₹1,10,800, with a target of ₹1,12,800 and stop loss at ₹1,09,900.
Technically, silver continues to show signs of strength, maintaining higher highs and higher lows. Koikkara highlighted ₹1,09,000 as a key support level. If prices remain above this mark, a breakout beyond ₹1,15,000 could set the stage for a fresh rally towards ₹1,18,000 in the medium term.
While Julius Baer’s Menke believes silver’s catch-up rally to gold has largely played out, he still sees room for near-term upside, with upgraded price targets of $37 and $40 per ounce for the next three to twelve months. However, he has now downgraded his view on silver to neutral.
For now, both gold and silver appear to be navigating a phase of consolidation, with analysts suggesting that any meaningful dips can be used as buying opportunities, especially as global uncertainties persist and central banks remain cautious on interest rate changes.