Gold Rebounds as Silver Surges Rs 4,000/kg Amid Positive US-Iran Peace Talks—Is Now the Time to Invest?
Gold and silver prices have shown some resilience after experiencing a decline, with gold futures for August 2026 delivering a modest gain of Rs 784, settling at Rs 1,47,987 per 10 grams. Conversely, silver futures for July 2026 have faced downward pressure, declining by Rs 3,921 (1.6%) to Rs 2,37,106 per kg. This reflects a broader market sentiment influenced by easing oil prices, although concerns over higher U.S. interest rates persist following recent hawkish signals from the Federal Reserve. The dichotomy of rising precious metal prices and the outlook for tighter monetary policy continues to create volatility in these markets.
In the international market, spot gold saw an increment of 0.9% to $4,197.41 per ounce, despite having reached its lowest level since June 11 earlier in the week. Meanwhile, analysts indicate a significant shift in expectations surrounding U.S. monetary policy; the CME FedWatch Tool highlights an 89% probability of a rate increase in December, a notable rise from the previous 61%. This anticipated tightening is critical, as gold typically loses its allure in a high-interest-rate environment where it fails to yield returns compared to other investments.
Trading strategies are recommended with a cautious optimism for both gold and silver based on support and resistance levels identified by market analysts. Gold is projected to hold support between Rs 1,46,100 and Rs 1,44,400, with potential resistance at Rs 1,48,800 to Rs 1,50,000. In the case of silver, the support range appears to be Rs 2,30,000 to Rs 2,26,600, while resistance stands at Rs 2,37,000 to Rs 2,41,000. Investors are encouraged to adopt a buy-on-dips approach, provided gold maintains its position above Rs 1,44,000 and silver above Rs 2,24,000, with expectations of a rebound towards higher target levels over the week.
The physical gold market reflects similar trends, with prices in major cities such as Delhi and Mumbai for standard 22-carat gold approximately ranging from Rs 1,07,112 to Rs 1,08,792 per 8 grams. The premium on pure gold (24 carat) also remains significant across various regions, underpinning a continued demand despite the ongoing price fluctuations. As market dynamics evolve, investors should stay attuned to global economic indicators and policy changes that may further impact precious metal valuations.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova team.)