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Gold futures dropped 6.81% last week from record highs due to a stronger U.S. dollar and easing U.S.-China trade tensions. Despite this, gold is up 23% year-to-date.
Gold is seen as a safe asset in uncertain times.
Gold Price Outlook: Gold futures witnessed a steep correction last week, retreating sharply from record highs amid global market shifts. According to Tejas Anil Shigrekar, Chief Technical Analyst for Commodities and Currencies at Angel One Ltd., the recent dip signals an opportunity for strategic selling, although the broader trend remains supported by long-term fundamentals.
Gold June futures tumbled 6.81% in a single week from a record high of $3,509.9 per ounce (Rs 99,358 per 10 grams on MCX), weighed down by a strengthening U.S. dollar and signs of easing trade tensions between the U.S. and China, following exemptions on select American goods from Chinese tariffs. China is reportedly encouraging companies to propose commodities eligible for exemption from its steep 125% tariffs. Despite the pullback, gold futures remain up 23% year-to-date, fueled by persistent U.S.-China trade tensions and strong central bank demand, with the metal touching an all-time high of $3,500.05 per ounce.
Despite the decline, gold is still up 23% year-to-date, bolstered by persistent geopolitical tensions and strong central bank buying. Prices touched an all-time high of $3,500.05 per ounce before correcting.
“The recent correction was triggered by a firmer dollar and a temporary improvement in U.S.-China trade sentiment. But from a broader perspective, gold remains a favored hedge amid global uncertainty,” said Shigrekar.
In tandem, silver prices also slipped, with the spot market recording a 1.77% decline to $32.90 per ounce. Yet, silver is still poised to post a third straight weekly gain. The gold-to-silver ratio widened, reflecting gold’s resilience during economic uncertainty, while silver struggled due to its reliance on industrial demand.
Experts Recommend ‘Sell on Rally’ Strategy In Near Term
From a technical standpoint, Shigrekar advised a “sell on rally” approach for both gold and silver. He noted that gold is facing immediate resistance between Rs 96,900–Rs 97,000 levels. “If gold sustains above Rs 97,000, the next strong resistance is seen around Rs 98,100,” he explained, while support lies in the Rs 91,700–Rs 91,200 range.
For silver, resistance is seen between Rs 97,100–Rs 97,600, with a more formidable ceiling at Rs 99,700 if it holds above Rs 97,600. On the downside, key support is expected in the Rs 89,100–Rs 88,500 range.
Gold Could Give Good Returns Over Next 5 Years
Sandip Raichura, CEO of Retail Broking and Distribution and Director at PL Broking and Distribution, commented, “Gold remains a shining investment as global uncertainty rises. With a potentially weaker dollar, India is well-positioned within global macroeconomic conditions. On this auspicious day, continuing to buy gold at current rates could lead to a fabulous run over the next five years.”
Aksha Kamboj, Vice President of the Indian Bullion and Jewellers Association (IBJA) and Executive Chairperson of Aspect Global Ventures, added, “Amid geopolitical tensions and currency fluctuations, gold continues to be a reliable asset. While short-term price corrections are possible, gold will remain a safe-haven asset. For consumers, gold offers both financial strength and emotional significance, making it a powerful way to celebrate prosperity and secure the future.”
Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
