Gold prices advanced over Rs 1,100 ($13.2) this week, while silver prices climbed more than Rs 2,000 ($24), driven by uncertainties surrounding a looming U.S. tariff deal deadline and a decline in the U.S. dollar index.
The 24-carat gold rate closed at Rs 97,021 per 10 grams on Friday, up Rs 1,135 from Rs 95,576 on June 30, according to India Bullion and Jewellers Association (IBJA) data. Similarly, 22-carat gold increased by Rs 1,131 to Rs 96,633 per 10 grams. Silver settled at Rs 107,580 per kilogram, a rise of Rs 2,070 from its June 30 closing price of Rs 105,510. Notably, silver had hit an all-time high of Rs 109,550 per kilogram on June 18.
Both precious metals have delivered significant returns in the first half of the calendar year, with gold surging 26% and silver zooming 22%. However, in June alone, silver notably outperformed gold.
Prathamesh Mallya, DVP-Research, Non-Agri Commodities and Currencies at Angel One Ltd., explained the shift. “Silver outperformed gold in June (Silver gained by 9.41% in the international markets while gold gained marginally by 0.4% because of the fall in gold-silver ratio from over 100 to around 92-93… combined with the critical $35/ounce mark that triggered momentum and technical buying on breakout,” Mallya stated.
He further noted that the silver supply has been in deficit for five consecutive years, with depleting inventories and record ETF inflows exceeding $1.6 billion in June, which has boosted market sentiment for the metal.
Considering silver’s diverse industrial applications, particularly in the automotive and clean energy sectors, and persistent supply tightness, Mallya anticipates continued outperformance for silver. “Going ahead, silver has the potential to outperform gold, because gold is just an asset which is a haven, while silver, being a precious metal, is also an industrial metal,” he concluded
–Input IANS
