Why is Silver Rising While Gold Prices Are Falling?
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Synopsis
The recent market dynamics reveal that silver prices have surged notably, while gold has seen a slight decline. This article delves into the factors influencing these trends and offers insights into the future of both precious metals in the wake of changing investor sentiments.
Key Takeaways
- Silver prices have increased significantly, reaching Rs 1,13,307 per kg.
- Gold prices have shown a slight decline amid market adjustments.
- Both metals are affected by investor sentiment and global economic trends.
- Silver's dual utility positions it as a promising investment.
- Future trends suggest price fluctuations for both metals.
New Delhi, July 29 (NationPress) The price of silver has seen a remarkable surge, contrasting with a slight drop in gold prices on Tuesday.
According to the India Bullion and Jewellers Association (IBJA), silver's price rose from Rs 1,12,984 to Rs 1,13,307 per kilogram, marking an increase of Rs 323.
For several trading sessions, silver has remained above Rs 1,10,000 per kg and reached an all-time high of Rs 1,15,850/kg on July 23.
Client Associates (CA) noted that silver is now regarded as more than just a precious metal; it stands as a modern asset class with industrial significance and a historical reputation, offering a unique dual advantage.
This distinctive blend positions silver as a strong portfolio diversifier, with potential returns of 15–20 percent over the next 12–24 months, according to the report.
Silver’s dual utility sets it apart from traditional precious metals, connecting its price dynamics to global uncertainty and technological advancements, the report highlighted.
In contrast, the price of 24-carat gold fell from Rs 98,446 to Rs 98,296 per 10 grams on Monday, as per IBJA.
Similarly, the price for 22-carat gold decreased by Rs 138, dropping from Rs 90,177 to Rs 90,039 per 10 grams. Additionally, the price of 18-carat gold declined by Rs 113, from Rs 73,835 on Monday to Rs 73,722 per 10 grams today.
Both silver and gold are experiencing upward trends in the futures market. The gold futures contract for August 5, 2025, has increased by 0.27 percent to Rs 97,804 on the Multi-Commodity Exchange (MCX). Likewise, the September 5, 2025, silver futures contract rose by 0.2 percent to Rs 1,13,281.
On the global market, both precious metals have shown slight increases. Silver gained 0.15 percent, trading at $38.28 per ounce on COMEX, while gold saw a rise of approximately 0.25 percent to $3,318.40 per ounce.
Analysts attribute the current price movements to investor sentiment, especially ahead of the US Federal Reserve's two-day policy meeting. Consequently, gold was trading at Rs 97,900 in the domestic market, while it exhibited a stronger gain of 0.30 percent on COMEX, reaching $3,325 per ounce.
"Gold prices traded slightly higher at Rs 97,900 with gains of Rs 350, while Comex gold rose by 0.30 percent to $3,325 amid the ongoing two-day U.S. Federal Reserve policy meeting," stated Jateen Trivedi of LKP Securities.
Analysts project that gold is likely to fluctuate within the range of Rs 97,000–Rs 98,650 in the near term.
Point of View
It is crucial to note that the fluctuations in precious metal prices reflect broader market sentiments and economic indicators. The recent surge in silver and the decline in gold suggest a complex interplay of industrial demand and investor behavior, which will be essential to monitor moving forward.
NationPress
31/07/2025
Frequently Asked Questions
What caused the rise in silver prices?
The increase in silver prices can be attributed to its growing industrial relevance and investor sentiment, particularly as it is seen as a modern asset class.
Why did gold prices decline?
Gold prices have slightly declined due to market adjustments ahead of the US Federal Reserve's policy meeting, reflecting changing investor sentiments.
What is the future outlook for silver and gold?
Analysts suggest that while silver may offer potential returns of 15-20% in the next 12-24 months, gold is expected to fluctuate within Rs 97,000–Rs 98,650 in the near term.
How do silver and gold prices correlate with the economy?
Prices for both metals are influenced by global economic conditions, investor behavior, and technological advancements, making them indicators of market sentiment.
What are the current prices for silver and gold?
As of the latest updates, silver is priced at Rs 1,13,307 per kg, while 24-carat gold is at Rs 98,296 per 10 grams.
