Gold, silver correction: Precious metals retreat after record rally; analysts expect consolidation amid global cues - The Times of India
After a meteoric rally this year, prices of gold and silver in India have pulled back, entering a phase of correction and consolidation. Analysts attribute this retreat to a mix of factors: profit-booking, a firmer US dollar, and anticipation of global policy decisions, especially from central banks. The recent uptick in investor caution comes as the market awaits clarity on international cues—from trade tensions to inflation data—that could steer precious-metal demand. While the short-term pause may feel like a setback, market watchers emphasise it as a healthy reset, rather than a reversal of the broader bullish trend. For now, the focus shifts to whether these metals can stabilise and build a base before the next leg of the move.
The Key points
- Both gold and silver have retreated from recent record highs, signalling the onset of a correction phase.
- The pull-back follows a strong rally earlier in the year driven by safe-haven demand and inflation fears.
- A stronger US dollar has made non-yielding metals relatively less attractive, contributing to the pause.
- Profit-taking by investors who jumped into the rally early is intensifying short-term selling pressure.
- Analysts view the current phase as consolidation, offering a potential buying window for long-term investors.
- Global events—such as central-bank decisions and trade negotiations—are now key drivers for metal prices.
- Easing geopolitical tensions have reduced some safe-haven bids, weighing on demand for gold and silver.
- The industrial role of silver adds complexity: its dual status as a metal and commodity influences its behaviour.
- While short-term volatility is elevated, fundamentals supporting precious-metal demand remain largely intact.
- Investors are advised to monitor incoming inflation data and currency moves for clues about the metals’ next direction.
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