Precious Metals Face Short-Term Correction
Gold and silver prices are experiencing a temporary pullback after a strong rally over the past year. Despite the recent decline, experts predict a positive long-term outlook for both metals.
The correction comes after significant gains, with 24-karat gold rising from Rs 75,000 to Rs 1.3 lakh per 10 grams over the last year. Silver has also surged sharply, nearly doubling in value during the same period.
Expert Views on Gold Price Movements
Rajesh Rokde, chairman of the All India Gem and Jewellery Domestic Council, told ANI that the recent dip in gold was expected after sustained gains.
“Gold rose from around $3,300 per ounce to $4,400 per ounce over four months, nearly a $1,100 increase. A small correction was natural after such a rise,” he said.
He added that the current gold price around $4,100 per ounce may dip slightly by $50-$100, but a major fall is unlikely. Global demand, central bank purchases, geopolitical tensions, US tariffs, and de-dollarization trends continue to support gold.
Rokde further explained that countries moving toward de-dollarization often convert dollar payments into gold, with China being a key example. He also noted that post-Diwali profit booking by traders can temporarily lower prices.
“Even after this correction, gold remains strong at Rs 1.25-1.26 lakh per 10 grams. The potential for further growth is high,” he said.
Silver Prices: Consolidation Expected
Ajay Kedia, founder of Kedia Commodities, said silver has gained around 85% since January, and a small pullback is normal after such a sharp rally.
“Silver prices may correct slightly, but extreme falls are unlikely. After a big rally, the market usually enters a consolidation phase,” he explained.
Currently, silver may find support around Rs 1.40 lakh per kg, though immediate buying opportunities are limited. Gold prices, which fell from $4,300 to $4,100 per ounce in recent sessions, may face short-term pressure depending on geopolitical developments, including talks between the US, China, and Russia.
Long-Term Outlook Remains Positive
Both experts agreed that while short-term dips are normal, the long-term trend for gold and silver remains strong. Factors such as global economic stability, central bank activity, and geopolitical uncertainty continue to support precious metal prices.
Investors are advised to stay cautious during temporary declines and focus on long-term investment potential rather than short-term market fluctuations.
