Gold and silver prices witnessed notable pressure on Tuesday as investors engaged in profit-taking after the recent rally in precious metals, driven by global uncertainties and expectations of monetary easing by major central banks.
In domestic markets, gold prices slipped marginally as traders booked profits at higher levels. The yellow metal had recently touched near-record highs amid geopolitical tensions, a softer US dollar, and safe-haven demand. However, with no fresh triggers and some stability returning to global cues, investors chose to lock in gains, leading to a mild correction.
Silver prices also came under pressure, declining more sharply than gold. Analysts attribute the fall to a combination of profit-booking and concerns over industrial demand, especially as mixed global economic data raised questions about the pace of recovery in key manufacturing economies. Silver, which has both precious and industrial metal characteristics, tends to react more sensitively to such signals.
In international markets, spot gold edged lower as US bond yields remained firm, reducing the appeal of non-yielding assets. A cautious stance ahead of upcoming US economic data, which could influence the Federal Reserve’s interest rate outlook, further limited upside momentum. Spot silver mirrored the trend, trading in the red during early sessions.
Market experts believe the broader outlook for gold and silver remains supportive in the medium to long term, given expectations of eventual rate cuts, persistent geopolitical risks, and central bank buying. However, in the near term, prices may remain volatile, with intermittent corrections driven by profit-taking and data-dependent cues.
Investors are advised to keep a close watch on inflation data, central bank commentary, and currency movements, as these factors are likely to determine the next directional move in precious metals.
