Gold and Silver Price Update: Gold Eases After Early Rise, Silver Maintains Strong Momentum
Precious Metals Market Today – May 8, 2025:
The prices of gold and silver moved in different directions today, drawing attention from both retail buyers and market analysts. Gold, which began the session with an encouraging upward move, lost steam later in the day. In contrast, silver held firm and extended its ongoing upward trend, supported by strong industrial use and investor confidence.
Gold Prices: Bright Start, Modest Pullback
Gold prices kicked off Thursday on a positive note. On the Multi Commodity Exchange (MCX), the gold futures contract for June 5 opened at ₹97,323 per 10 grams. This marked an increase of ₹233 from Wednesday’s closing level of ₹97,090.
However, that early optimism didn’t last long. As the day unfolded, gold prices came under pressure, slipping slightly from the opening highs. Factors such as mild strength in the U.S. dollar and cautious global sentiment contributed to this softening in gold’s performance during mid-day trading.
Market watchers attribute the brief rally to renewed safe-haven demand amid uncertain economic cues. But with investors booking profits after recent gains and awaiting fresh global triggers, gold could not hold on to its early momentum.
Silver Continues to Climb Steadily
Silver prices, on the other hand, continued to shine. The white metal remained in demand, with its price hovering above ₹1,16,000 per kilogram on the MCX. Today’s gains extended the bullish trend seen over the past several sessions, driven largely by consistent demand from industrial sectors and investment interest.
Silver’s dual role — both as a store of value and as a critical raw material in technologies like solar energy and electronics — is helping it outperform gold in certain phases. Its appeal among investors is rising, especially as industries gradually rebound and infrastructure projects regain pace globally.
What’s Moving the Market?
Several intertwined domestic and international factors are shaping the movement of gold and silver this week:
- Ongoing Geopolitical Developments
Heightened tensions in different parts of the world continue to create unease among investors. As a result, many are seeking safety in assets like gold and silver. - Central Bank Decisions
The U.S. Federal Reserve’s approach to interest rates is under the spotlight. While there’s growing speculation about possible rate cuts later this year, the lack of clear signals is keeping bullion prices in a tight range. Lower interest rates typically boost gold and silver prices by reducing the opportunity cost of holding non-yielding assets. - Fluctuating Dollar Index
The value of the U.S. dollar plays a critical role in gold and silver pricing. Today’s slight dollar firmness limited further gains in gold, though it had a lesser impact on silver. - Festive and Seasonal Demand in India
With wedding season in full swing and Akshaya Tritiya around the corner, domestic gold purchases are expected to rise. This traditional buying period tends to push prices upward in the short term. - Strong Silver Fundamentals
Industrial demand for silver remains robust. Sectors such as renewable energy, electric vehicles, and high-tech electronics continue to drive steady consumption of the metal, giving silver additional support beyond its role as a precious asset.
Where Prices Stand (Approximate Rates)
Here’s how gold and silver prices are trending in major Indian cities:
- Delhi: ₹98,400 per 10g (24K gold); ₹90,200 (22K gold)
- Mumbai: ₹98,300 (24K); ₹90,100 (22K)
- Chennai: ₹99,100 (24K); ₹90,900 (22K)
- Kolkata: ₹98,250 (24K); ₹90,050 (22K)
- Silver (across cities): ₹1,16,500–₹1,17,200 per kg
Note: Rates vary based on local taxes, making charges, and jeweler premiums.
What Should Investors Do Now?
For those eyeing gold as a long-term hedge against inflation and volatility, the current slight dip may offer a buying opportunity. Experts recommend a phased approach — investing in small quantities over time — to reduce risk from market swings.
Silver also presents an attractive case. Its relatively lower price compared to gold, coupled with strong industrial demand, could lead to better returns in the near-to-medium term. Those with a moderate risk appetite might consider diversifying their portfolio with silver.
However, as with any commodity investment, keeping an eye on international news, currency fluctuations, and government policies is crucial. Volatility can strike quickly, and informed decisions tend to be more rewarding.
What Lies Ahead?
Looking forward, several upcoming data releases — including U.S. employment figures, inflation numbers, and central bank minutes — will play a vital role in shaping precious metal trends. If economic data point toward slowing inflation and growth, the likelihood of rate cuts increases, which can further support gold and silver prices.
Domestically, gold demand is expected to pick up ahead of Akshaya Tritiya, one of the most auspicious occasions for buying gold in India. Historically, this period brings a spike in demand from both rural and urban markets.
Conclusion
Thursday’s trading session saw a tale of two metals. Gold, despite a promising start, faced a mild pullback due to cautious market sentiment and profit booking. Silver, on the other hand, remained in the green, backed by a strong mix of industrial demand and investment interest.
For now, investors are advised to stay alert and well-informed. With several key developments on the horizon, gold and silver are likely to remain active in the weeks ahead — offering both opportunities and risks depending on how the global and domestic scenarios unfold.
