Gold and silver began the day on a weak note but later recovered, reversing early losses and closing slightly higher. The movement followed global signals as a stronger US dollar put initial pressure on precious metals, yet firm physical demand and continued central bank purchases helped both assets regain ground by the session's close.
On MCX, December gold futures opened lower but later moved into positive territory, rising after intraday softness. Silver followed a similar path, opening weaker before staging a mild rebound. Market participants pointed to steady institutional buying and safe-haven appetite as contributing factors to the recovery.
Globally, gold prices initially softened due to renewed strength in the US dollar, fuelled by uncertainty over the timing and scale of potential Federal Reserve rate cuts. Although sentiment was pressured by the Fed chair's hawkish tone, ongoing central bank accumulation — particularly from countries such as Kazakhstan and Brazil — ensured underlying support. Analysts also noted that the European Central Bank's decision to hold rates helped cap the dollar's upside, providing bullion with breathing room.
Domestic analysts highlighted key price zones. Gold is seen holding support near Rs 1,21,470 to Rs 1,20,880, with resistance expected between Rs 1,21,990 and Rs 1,22,500. Silver may find support between Rs 1,47,450 and Rs 1,46,750 and faces resistance around Rs 1,49,740 to Rs 1,50,880. Broader sentiment remains tied to global macro developments, including trade discussions between the United States, China, and India.
Market outlook remains cautious. With geopolitical uncertainty and strong central-bank buying offering a floor, analysts anticipate continued volatility. If global trade dialogue stabilises risk sentiment and the dollar softens, precious metals could extend their upward trend. However, stronger dollar movement or more aggressive monetary signals from the US could limit gains in the short term.
