On June 18, silver prices continued their strong upward trend, hitting new all-time highs due to multiple supporting factors. July silver futures on the MCX reached ₹1,09,748 per kg, breaking the previous day’s record. September futures surged even higher to ₹1,11,000 per kg. This marks a significant 25% gain from the low of ₹88,050 per kg, highlighting silver’s recent momentum.
In contrast, gold prices slipped further. August gold futures dropped by 0.2%, trading around ₹99,329 per 10 grams. This follows a recent high when gold futures crossed the ₹1 lakh mark for the first time on the MCX, but prices have since pulled back.
As silver rises and gold falls, the gold-silver ratio — which measures how many ounces of silver are needed to buy an ounce of gold — has dropped to around 91. This is a notable shift from April and May when it stayed above 100.
Gold Remains Range-Bound Amid Key Global Events
Gold prices are trading in a tight range as markets await the U.S. Federal Reserve’s interest rate decision, expected at 11:30 PM IST. According to Jateen Trivedi, VP at LKP Securities, three major global factors are influencing gold’s direction: the Fed’s rate decision, tensions between Iran and Israel, and global trade negotiations. These events could bring volatility and set the tone for where gold moves next. In the short term, gold is expected to trade between ₹98,500 and ₹1,00,500.
Despite the recent dip, Tata Mutual Fund remains optimistic on gold’s long-term potential. It noted that any price drop could be seen as a buying opportunity, especially due to continued central bank buying and the potential impact of U.S. monetary policy on gold’s appeal as a strategic asset.
Silver’s Short-Term Outlook Remains Strong
As for silver, analysts believe it will stay strong in the near term, supported by the falling gold-silver ratio and improving fundamentals. With rising industrial demand and broader economic recovery, silver is seen as a developing growth asset. Analysts suggest looking for any dips in prices as entry points for medium-term investment.
