Gold and silver prices in India have remained volatile in recent weeks, reflecting the interplay of global macroeconomic signals and geopolitical tensions.
On the Multi Commodity Exchange (MCX), gold for April futures had earlier opened 0.6 per cent lower at ₹1,60,651 per 10 gm compared with its previous close of ₹1,61,634, while silver for May futures slipped 0.29 per cent to ₹2,67,497 per kg from ₹2,68,285.
Despite these short-term corrections driven by a stronger dollar and rising bond yields, precious metals continue to witness sharp intraday movements. Exchange-traded funds (ETFs) linked to bullion also reflected this volatility, with several gold and silver ETFs gaining as much as 7 per cent as prices rebounded amid shifting global cues.
The ongoing conflict involving the US, Israel and Iran has further amplified haven demand for precious metals. In times of geopolitical instability, investors typically gravitate towards assets perceived as stores of value, even if prices fluctuate in the short term.
Silver-based ETFs saw particularly strong momentum, with Tata Silver ETF rising nearly 10 per cent to an intraday high of ₹26.74 from ₹25.06, while other funds in the segment advanced around 4–5 per cent.
Geopolitical uncertainty
In the gold ETF category, Zerodha Gold ETF led gains with a 3 per cent rise to a day’s high of ₹25.72, while several other gold-backed funds recorded increases of about 1–2 per cent. Globally, the rally in bullion was also supported by weakness in the dollar after indications that the Middle East conflict could potentially de-escalate.
For Indian investors and jewellers, these developments point to continued price volatility in the near term. Market participants are closely watching key US inflation indicators, including the Consumer Price Index and the Personal Consumption Expenditures index, which could influence interest rate expectations and currency movements.
Meanwhile, other precious metals have also recorded gains, with spot silver rising nearly 3 per cent, while platinum and palladium edged higher. Against a backdrop of geopolitical uncertainty, fluctuating currencies and shifting monetary policy expectations, gold and silver are likely to remain central to portfolio diversification and risk management strategies in the months ahead.
This institutional shift is visible in sustained central bank gold purchases, particularly across emerging markets, alongside steady allocations to metal-backed instruments. The demand has been strategic rather than frenetic. Silver, meanwhile, benefits from a dual narrative: its monetary appeal combined with growing industrial demand tied to renewable energy, electronics and electric mobility.
Strategic asset
For Indian participants, gold prices are shaped by global bullion rates, dollar strength, and rupee movement. Currency depreciation can amplify domestic returns even when global prices are stable. Meanwhile, sustained central bank accumulation reinforces gold’s role as a strategic reserve asset in a shifting global order. Silver’s pricing reflects both monetary sentiment and industrial demand expectations, making it comparatively more volatile but structurally supported by global energy transition and digital expansion.
For consumers, the approach to precious metals is also evolving. While physical gold remains culturally embedded, financial instruments such as Sovereign Gold Bonds and ETFs provide liquidity, transparency, and efficiency without storage risks. The choice between physical and financial formats should align with long-term financial planning rather than short-term price momentum.
Precious metals remain sensitive to rate cycles and liquidity conditions, and volatility is inherent. However, the current rally arguably signals not speculation but a reassessment of risk. In a world where policy outcomes are less predictable and correlations rise during stress, gold and silver may be seen less as vehicles for extraordinary gains and more as instruments of balance within a broader portfolio strategy.
(The author is chairman, Poonawalla Group)
Published on March 15, 2026