Why are Gold Prices Maintaining a Bullish Structure This Week?
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Synopsis
This week, Indian bullion prices showed resilience despite a slight dip, maintaining a bullish structure driven by uncertainty over the US Federal Reserve’s decisions. The ongoing appeal of gold as a safe-haven asset remains strong amid global trade tensions. Discover the latest insights into bullion trends and market dynamics.
Key Takeaways
- Gold prices have maintained a bullish trend despite minor fluctuations.
- The appeal of gold as a safe-haven asset remains strong amid global uncertainties.
- Silver has outperformed equities, driven by industrial demand.
- Central bank purchases continue to support bullion prices.
- Analysts predict gold trading within a specific range in the coming weeks.
New Delhi, Sep 27 (NationPress) While Indian bullion prices experienced a slight dip, they preserved a bullish trend this week, fueled by the uncertainty surrounding the US Federal Reserve's policy. The cost of 24-carat gold (10 grams) kicked off the week at Rs 1,13,498 on Monday, peaked at Rs 1,14,044 on Tuesday, and concluded the week at Rs 1,13,260, as per the India Bullion and Jewellers Association (IBJA) data.
The yellow metal continued to be favored as a safe-haven asset, bolstered by ongoing global trade tensions, a weakening rupee, consistent purchases by central banks, and ambiguity regarding the Fed's future actions.
Silver also saw significant interest from buyers, benefiting from strong industrial demand amid supply constraints. The closing price for silver stood at Rs 1,37,467 per kilogram on Friday, based on IBJA figures.
According to Jateen Trivedi, VP Research Analyst at LKP Securities, "Gold prices remained stable at Rs 1,14,000 with a modest increase of Rs 130 as Comex Gold held its ground, while the dollar showed slight positivity and the rupee hovered flat around 88.71."
He added, "US GDP figures were higher, causing minor profit-taking yesterday, but gold quickly rebounded, keeping its bullish structure. The overall outlook remains optimistic, with support at Rs 1,12,500 and resistance at Rs 1,15,000."
Gold is projected to fluctuate between Rs 1,07,500 and Rs 1,11,000, he mentioned.
The bullion has outperformed Indian equities for the fourth consecutive Diwali-to-Diwali cycle, reinforcing a trend where gold has surpassed equities in seven of the past eight years.
Silver also outperformed Indian equities for the third consecutive year, driven by robust industrial demand from sectors such as solar panel manufacturing, semiconductors, and electric vehicles.
Additionally, analysts indicate that bullion continues to gain support from strong central bank purchases and ongoing inflows into ETFs. Cautious remarks from the Fed Chair regarding inflation, the labor market, and potential rate cuts could limit bullion's gains.
Point of View
It's essential to recognize the ongoing strength of bullion in the market. Despite fluctuations, gold's status as a safe-haven asset remains unshakeable, supported by central bank actions and global uncertainties. This trend indicates a shift in investor confidence and highlights the need for continued monitoring of economic indicators.
NationPress
27/09/2025
Frequently Asked Questions
What factors are influencing gold prices?
Gold prices are influenced by global trade tensions, the US Federal Reserve's policies, and central bank purchases, making it a safe-haven asset.
How has silver performed recently?
Silver has also shown strong performance, driven by industrial demand and supply constraints, outperforming equities for the third consecutive year.
What is the expected trading range for gold?
Gold is expected to trade between Rs 1,07,500 and Rs 1,11,000 in the upcoming weeks.
