Image Source: The Economic Times
India’s precious metals market saw a measured start today, with MCX gold holding steady below the key psychological mark of Rs 1 lakh per 10 grams after the closely watched meeting between US President Donald Trump and Russian President Vladimir Putin. Meanwhile, silver prices continued their upward trend, attracting renewed interest from investors.
Key Highlights
MCX gold futures remained flat, trading below Rs 1,00,000 per 10 grams despite recent fluctuations attributed to global diplomatic headlines.
Today, spot gold prices ticked up 0.1% to $3,340.71 per ounce after dipping to a one-week low, as investors digested the implications of the Trump-Putin summit and renewed peace overtures for Ukraine.
US gold futures for December rose 0.1% to $3,385.70 per ounce, reflecting cautious optimism in safe-haven demand.
Silver prices in India gained traction, rising to Rs 113,977 per kilogram, reflecting a modest daily gain and continued momentum from last week’s volatility.
Oil prices also slipped, easing inflationary pressures and providing slight support to precious metals.
Global and Domestic Factors Driving Gold
The latest round of US-Russia diplomacy calmed some global geopolitical anxieties, leading to subdued haven buying in the gold market.
A surge in US wholesale inflation data last week initially pressured gold downwards, as traders reassessed the likelihood of further rate cuts by the US Federal Reserve this year.
Despite today’s flat performance, gold is still up over 25% year-to-date, maintaining its appeal among cautious investors and those hedging against uncertain macroeconomic conditions.
The weakening dollar post-summit has helped support gold prices for non-dollar buyers, adding cushion on the downside.
Silver Outshines on Renewed Demand
MCX silver prices rose to Rs 113,977 per kilo; in most major Indian cities, prices crossed Rs 114,000 per kilogram.
Industrial and investment demand for silver is rebounding, with traders citing price consolidation as a buying opportunity after sharp swings earlier this month.
Silver’s industrial applications—in electronics, solar panels, and green technology—continue to bolster its long-term prospects, contributing to sustained investor interest.
Market Sentiment and Trends
Precious metals traders observed that gold is stabilizing after last week’s decline, while interest in silver appears to be building, supported by both industrial usage and jewelry demand ahead of the festive season.
Analysts remain cautious, pointing out that gold’s next big move will depend on any new geopolitical escalations or changes in global central bank policies.
Investors are advised to track global cues, inflation readings, and currency trends for short-term trading signals in gold and silver.
Outlook
With the immediate outcome of the Trump-Putin meeting perceived as a de-escalation of global tension, acute safe-haven flows into gold may pause, keeping prices steady below the key Rs 1 lakh mark.
Should geopolitical uncertainties revive or if inflation surprises resurface, both gold and silver could quickly see renewed volatility and upside potential.
Conclusion
While MCX gold opened flat below Rs 1 lakh following the Trump-Putin summit, silver prices managed a respectable gain, reflecting shifting market dynamics. The next chapter for both metals will likely hinge on the evolving macroeconomic and geopolitical landscape, making vigilance essential for traders and investors.
Source: Economic Times, Reuters, GoldPriceIndia.com, August 18, 2025
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