Gold Holds Steady, Silver Slides: Precious Metals React to Fed Pause and Geopolitical Tensions

Gold prices opened modestly lower on June 20, 2025, following the Federal Reserve's decision not to raise interest rates and mixed global cues holding the yellow metal in a tight trading range. Compared to this, silver prices declined more sharply, evidencing a loss of momentum between the two top precious metals.

 

Gold Futures and Spot Prices:

Gold futures started at $3,387.10 an ounce, a small 0.08% decline from Wednesday's close and 0.6% from the week. Nevertheless, gold has risen 5.2% in the past month and has risen 45.4% in the past year, indicating its strength as a safe-haven asset.

 

Domestic Market Trends:

Indian gold prices fell by about ₹530 on June 20, with 24-carat gold quoted at ₹9,886 per gram in Mumbai and ₹98,690 per 10 grams in Delhi. Prices of silver fell 1.35% to ₹1,06,430 per kilogram in the domestic market, which is an indication of underlying weakness in the white metal.

 

Silver's Recent Performance:

Although down in the recent slide, silver has been among the best performers of 2025, up 28% year-to-date to $37.12 an ounce earlier this week. The recent correction, though, is an indicator of volatility as investor sentiment and industrial demand shift.

 

Global Factors:

Gold's appeal remains supported by ongoing Middle Eastern geopolitical tensions that have created safe-haven demand. However, dovish Fed policy to cut rates and a strengthening U.S. dollar are capping further gains. As one analyst states, enhanced hostilities in international conflicts can soon restore gold's bullish trend.

 

Prediction:

Major banks like Citi anticipate that gold will move into the $3,100-$3,500 per ounce range in Q3 but warn that it could dip below $3,000 levels by the end of 2025 if investment demand declines. Silver, however, will move into $40 per ounce within 6-12 months on the back of supply deficits and robust industrial demand.

 

"Gold is generally regarded as a safe haven, especially in times of geopolitical stress and financial volatility."

 

Source: Yahoo Finance, Angel One, Reuters, CBS News, CNBC