Gold Dips Marginally While Silver Holds Steady Amid Central Bank Buying

Domestic bullion rates on Tuesday exhibited a mixed trajectory, as retail gold experienced a slight correction while silver prices remained unchanged across key markets. According to Jos Alukkas, 24-karat gold dipped by 21 INR to stand at 14,405 INR per gram, reflecting a modest 0.15% decline from the previous session. Meanwhile, GoodReturns data indicated that retail silver held entirely steady, maintaining its previous pricing levels at 235.0 INR per gram and 235,000 INR per kilogram.

Globally, the broader precious metals space witnessed divergent influences from shifting macroeconomic indicators and currency dynamics. COMEX gold saw an increase to 4,120.10 USD per ounce, supported by market anticipation surrounding Federal Reserve monetary policy and renewed geopolitical dialogues. Domestically, the USD/INR exchange rate climbed slightly to 95.4090, increasing the cost of imported bullion, even as MCX October gold contracts trended upward by 0.50% to reach 143,607 INR per 10 grams.

Long-term support for the yellow metal continues to be reinforced by aggressive institutional accumulation, with central banks significantly expanding their reserves over recent quarters. Retail consumer demand in India is gradually shifting toward lightweight jewelry and modern accessories, while industrial silver consumption remains underpinned by renewable energy and electronic applications despite high input costs.