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Mint
2 days ago
- Business
- Mint
Gold vs silver: Which is a better investment amid geopolitical and trade uncertainties?
Gold and silver prices have gained strong momentum recently, with MCX gold rate surpassing ₹ 98,000 per 10 grams and MCX silver reclaiming the ₹ 1 lakh per kg mark. The rally in gold prices tracks international bullion trends, driven by weak US economic data and rising geopolitical tensions. Investor demand for safe-haven assets strengthened after former US President Donald Trump renewed calls for interest rate cuts by the Federal Reserve. Globally, gold remained firm near $3,370 per ounce amid economic uncertainty, a contraction in US services data, and the slowest private job growth since March 2023. Gold typically performs well in low interest rate environments and during times of economic distress. On Thursday, domestic gold prices slipped marginally on profit booking after hitting an intraday high of ₹ 98,610 per 10 grams. Meanwhile, silver prices posted strong gains, supported by both safe-haven demand and industrial use. International silver prices hovered around $34.50 per ounce — near a seven-month high — as disappointing US data weakened the dollar. On MCX, silver price rose 0.23% to ₹ 1,01,609 per kg. While both metals have rallied amid geopolitical and trade uncertainty, silver is emerging as a promising performer, say analysts. 'Gold remains a trusted safe haven for capital preservation, although short-term corrections are likely. Silver, supported by robust industrial demand from sectors such as electric vehicles and solar energy, presents greater growth potential — albeit with higher volatility,' said Jigar Trivedi, Senior Research Analyst at Reliance Securities. According to Trivedi, if silver prices sustain above $34.50 per ounce, it could rally towards $36. On MCX, July silver futures could climb to ₹ 1,10,000 per kg, tracking the bullish global trend. He recommends a diversified strategy with 5%–8% portfolio allocation to gold and 10%–15% to silver. "A balanced approach allows investors to benefit from gold's stability and silver's potential upside in 2025," he added. Ajay Kedia, Director at Kedia Advisory, pointed out that the gold-silver ratio has declined sharply from 107 to 97. 'This drop indicates a shift in investor preference towards silver, driven by expectations of outperformance. Additionally, easing US-China trade tensions and hopes of global interest rate cuts could spur economic growth and industrial demand for silver,' Kedia said. He expects silver to outperform gold over the long term. Technically, MCX silver price may face resistance at ₹ 1,04,800. A breakout above this could push prices to ₹ 1,08,600, while support is seen at ₹ 95,000–94,000 levels. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Zawya
28-05-2025
- Business
- Zawya
Gold firms as investors buy the dip ahead of Fed's meeting minutes
Reuters - Gold firmed on Wednesday as investors bought the dip after prices declined in the previous session, while markets awaited minutes of the Federal Reserve's latest policy meeting and economic data for insights on the U.S. interest rate outlook. Spot gold was up 0.6% to $3,320.58 an ounce, as of 0853 GMT. Bullion fell below the $3,300 level and hit a low of $3,285.19 in the previous session. U.S. gold futures rose 0.6% to $3,319.50. "Gold is rebounding mainly due to bargain hunting after a sharp drop in the previous session," said Jigar Trivedi, senior commodity analyst at Reliance Securities. "Markets are also in a wait-and-watch mode ahead of the Fed minutes, prompting position adjustments." Markets are awaiting minutes of the Federal Reserve's latest policy meeting due later in the day, followed by the U.S. PCE data for April, due on Friday. A slew of Fed officials are also speaking this week for further insights into monetary policy. "Gold could climb on lower-than-expected PCE prints that ease stagflation fears while paving the way for more Fed rate cuts," said Han Tan, chief market analyst at Exinity Group. New York Fed President John Williams said on Wednesday central banks must "respond relatively strongly" when inflation begins to deviate from their target. The Fed has kept its policy rate at 4.25%-4.50% since December as officials wait for clearer insights into the economy as policymakers are also dealing with market volatility caused by U.S. President Donald Trump's fluctuating remarks on negotiations with the country's trading partners. "Gold may ultimately break out of the $3,000-$3,500 range once the Fed signals greater willingness to resume its rate-cutting cycle," Tan said. Spot silver gained 0.1% to $33.34 an ounce, platinum firmed 0.8% to $1,087.97 and palladium rose 0.1% to $979.57.
CNBC
28-05-2025
- Business
- CNBC
Gold firms as investors buy the dip ahead of Fed's meeting minutes
Gold firmed on Wednesday as investors bought the dip after prices declined in the previous session, while markets awaited minutes of the Federal Reserve's latest policy meeting and economic data for insights on the U.S. interest rate outlook. Spot gold was up 0.6% to $3,320.58 an ounce, as of 0853 GMT. Bullion fell below the $3,300 level and hit a low of $3,285.19 in the previous session. U.S. gold futures rose 0.6% to $3,319.50. "Gold is rebounding mainly due to bargain hunting after a sharp drop in the previous session," said Jigar Trivedi, senior commodity analyst at Reliance Securities. "Markets are also in a wait-and-watch mode ahead of the Fed minutes, prompting position adjustments." Markets are awaiting minutes of the Federal Reserve's latest policy meeting due later in the day, followed by the U.S. PCE data for April, due on Friday. A slew of Fed officials are also speaking this week for further insights into monetary policy. "Gold could climb on lower-than-expected PCE prints that ease stagflation fears while paving the way for more Fed rate cuts," said Han Tan, chief market analyst at Exinity Group. New York Fed President John Williams said on Wednesday central banks must "respond relatively strongly" when inflation begins to deviate from their target. The Fed has kept its policy rate at 4.25%-4.50% since December as officials wait for clearer insights into the economy as policymakers are also dealing with market volatility caused by U.S. President Donald Trump's fluctuating remarks on negotiations with the country's trading partners. "Gold may ultimately break out of the $3,000-$3,500 range once the Fed signals greater willingness to resume its rate-cutting cycle," Tan said.
Time of India
28-05-2025
- Business
- Time of India
Indices decline over 1% amid global market concerns and profit booking
The Volatility Index or VIX - the market's fear gauge - gained 2.85% to 18.5 on Tuesday, indicating traders expect higher risks in the near term. Indian equity indices experienced a decline of over 1% on Tuesday, influenced by weak global cues and profit-booking in key sectors ahead of the monthly expiry. Despite the downturn, analysts maintain a bullish outlook. Market sentiment was also affected by uncertainty surrounding Donald Trump's tariffs and trade agreements, contributing to investor caution. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mumbai: India's equity indices fell more than 1% on Tuesday, although the gauges recouped some losses through a choppy trading session marked by weak global cues and profit-booking in heavyweight sectors ahead of the monthly expiry. Analysts said the undertone remains bullish, despite Tuesday's NSE Nifty fell 0.7%, or 174.95 points, to finish at 24,826.20. The BSE Sensex moved 0.8%, or 624.82 points, lower at 81,551.63."The market was jittery amid global nervousness due to lack of clarity on Donald Trump's tariffs, and trade agreements. With the F&O expiry coming up, investors remained cautious," said Siddartha Khemka, Head of Retail Research, Motilal Oswal Financial Services A lack of positive triggers at the tail end of the earnings season on the domestic front also caused the gauges to lose momentum, said Nasdaq Composite Index fell 1% while the Dow Jones Industrial Average declined 0.6%, on Friday. The US markets were closed Monday for the Memorial Day Asia, China and Taiwan fell 0.2% and 0.9%, respectively, while South Korea declined 0.3%. Japan rose 0.5% and Hong Kong rose 0.4%.Analysts said that heavyweight sectors, such as banking, IT and FMCG that together make up almost 60% of the benchmark, witnessed profit booking due to the monthly expiry."The markets were trading lower after testing 25,050 levels during the day and the call concentration and open interest was highest at these levels in Nifty," said Vikas Jain, head of research, Reliance Securities. "The rollover moved up to almost 48% from 35%."The Volatility Index or VIX - the market's fear gauge - gained 2.85% to 18.5 on Tuesday, indicating traders expect higher risks in the near FMCG and IT indices fell 0.9% and 0.8%, respectively, while Bank Nifty moved 0.4% lower. Nifty Auto Index declined 0.7%. The broader market bucked the downtrend and ended higher with the Nifty Mid-cap 150 index advancing 0.21% while the small-cap 250 index ended 0.11% higher. In past week, the mid-cap index and small-cap index rose 1.8% and 1.6%. 'While headline indices witnessed profit-booking due to weak global cues, broader market witnessed good momentum supported by institutional buying in selective sectors,' said Khemka.'IPOs have started coming up which indicates broader market strength.' Out of the 4,084 shares traded on BSE, 1,897 advanced, while 2,053 declined. Foreign portfolio investors (FPIs) bought shares worth a net Rs 348.5 crore on Tuesday. Their domestic counterparts bought shares worth Rs 10,104.6 crore. In May, overseas investors bought Rs 15,132.3 crore. Technical analysts said 24,650 is a key level on the downside and if benchmark Nifty breaches this level, then further corrections are possible till 24,300 levels. However, the momentum is positive.
Time of India
22-05-2025
- Business
- Time of India
Gold will hit $4000 in one year! Will this JP Morgan prediction come true?
Gold prices are regaining momentum amid economic uncertainty and rising fiscal concerns. While JP Morgan projects a surge to $4,000/oz by Q2 2026, analysts at Reliance Securities see potential for a climb to $3,800/oz within 9–12 months. With safe-haven demand intact and central bank buying strong, the outlook for gold remains bullish despite recent price dips. Tired of too many ads? Remove Ads JP Morgan predicts gold to surge up to $4,000 Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The prices of gold were sparkling not long ago, as rising geopolitical uncertainties boosted the demand for the safe-haven asset. When domestic gold prices surged to Rs 1 lakh/10 grams, global brokerage firm JP Morgan predicted that the yellow metal prices would shoot up to $4,000 in the international markets by the second quarter of the recent easing of geopolitical tensions has led to a pullback in safe-haven buying, causing gold's rally to lose such a scenario, what is the outlook for gold now? Is there more steam left in the yellow metal?Earlier in April, projected gold prices to an average of $3,675 per ounce by the fourth quarter of 2025, and to cross the $4,000/oz level by the second quarter of global investment bank had cited deepening macroeconomic concerns and rising geopolitical instability as key reasons behind the projected price its note, JP Morgan had stated, 'Tariff-driven recession and stagflation risks were forecasted to continue to supercharge gold's structural bull run.'The forecast was built on the gains gold had already made in the first quarter of 2025 and had factored in continued strong demand from both investors and central banks, averaging around 710 tonnes per quarter on a net basis that with the gold prices easing from their peak, what can be expected in the future?Gold prices may reach $3,800/oz in 9-12 monthsAccording to an analysis by Jigar Trivdi, Senior Research Analyst - Currencies & Commodities at Reliance Securities, COMEX gold appears poised for another leg of its bull run, with a possibility of the prices climbing as high as $3,800/oz in the next 9-12 prices climbed above $3,220 per ounce as persistent concerns over the U.S. economic outlook and widening fiscal deficit continued to fuel demand for safe-haven Moody's downgraded the U.S. credit rating from 'Aaa' to 'Aa1' on Friday, citing rising debt levels and interest costs that are 'significantly higher than similarly rated sovereigns.''Fears of a potential recession and stagflation, coupled with ongoing global trade tensions, have further dampened sentiment around the U.S. economy. While there have been incremental improvements in the U.S.-China trade dynamics, the overall weakness could continue to pressure the U.S. dollar in the second half of the year, creating further upside for gold,' Trivedi this, he added that geopolitical risks remain elevated. The Russia-Ukraine conflict has seen renewed diplomatic movement, with President Donald Trump stating that Ukraine and Russia could begin immediate ceasefire negotiations, potentially without U.S. involvement, following a phone call with Russian President Vladimir Putin.'COMEX gold appears poised for another leg of its bull run, with a potential breakout above $3,500/oz. We do not rule out the possibility of prices reaching $3,800/oz over the next 9 to 12 months,' Trivedi Indian terms, with the upcoming festival season and sustained domestic investment demand, he noted that gold prices could rise above Rs 1,10,000/10 gm and possibly even Rs 1,15,000/10 this backdrop of heightened global uncertainty, central banks are likely to continue accumulating gold as part of their reserve diversification strategies. Simultaneously, investment demand- reflected in robust ETF flows - is expected to remain strong.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
