Gold and silver prices are trading near all-time highs, driven by a confluence of global events, economic uncertainty, and investor demand. Gold touched a record high of ₹80,650 per 10 grams in India on Monday (October 22), while silver crossed ₹99,000 per kg in the national capital.

This upward momentum has prompted investors to reevaluate their strategies, especially with gold’s safe-haven appeal shining brightly amid global turbulence.

Global factors fueling the rally

Globally, the rise in geopolitical tensions, particularly in the Middle East, continues to fuel demand for precious metals.

The ongoing conflict between Israel and militant groups in Gaza, along with the assassination of key Hezbollah and Hamas leaders, has further intensified safe-haven buying.

Saumil Gandhi, Senior Analyst at HDFC Securities, commented, “Gold rose to another all-time high, fueled by safe-haven buying and prospects of ongoing monetary easing from western central banks.”

The upcoming US presidential election has also added to market volatility, with investors seeking refuge in gold as uncertainties surrounding the election outcome increase.

As former President Donald Trump and Vice President Kamala Harris engage in a tight race, investors are wary of the potential impact on global markets.

Additionally, global central banks’ sustained interest in gold, along with expectations of more rate cuts, has provided further support.

According to Pranav Mer, Vice President at JM Financial Services, “Safe-haven demand rose due to geopolitical uncertainty, buying among ETF investors, and the expectation of more rate cuts from global central banks.”

Indian markets

In India, festive and wedding season demand, combined with global cues, has pushed gold prices to unprecedented levels

Local jewellers’ increased buying to meet festive demand has further driven the price rally.

Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, pointed out that silver’s rally is being supported by industrial demand, particularly from sectors like electric vehicles (EVs) and photovoltaic applications.

“Silver prices have gained strong upward momentum. As gold prices soar, retail buyers are increasingly turning to silver, viewing it as a relatively cheaper alternative at these levels,” he explained.

What lies ahead for gold and silver?

Looking forward, gold prices are likely to maintain their upward trajectory, with technical support seen around ₹77,000-₹77,250 per 10 grams on the MCX, according to Trivedi.

“On the upside, resistance is seen in the range of ₹78,550-₹78,775 per 10 grams, indicating the next potential targets for further gains,” he noted.

The broader global economic uncertainty, coupled with expectations of more central bank interventions, suggests that gold’s momentum will persist.

Similarly, silver is expected to remain well-supported as industrial demand continues to grow.

Citi Research has revised its 6-12 month forecast for silver prices upward to $40 per ounce from $38, underscoring the metal’s bullish outlook.

Investment strategies

For investors, the current environment presents both opportunities and risks.

While gold continues to offer a hedge against uncertainty, analysts caution that profit-booking could lead to some short-term corrections.

“Traders will remain cautious as a round of profit-booking cannot be ruled out,” warned Mer.

Nevertheless, for those looking to hedge against geopolitical risks and economic instability, precious metals remain a solid option.

As Trivedi summed up, “Given the current geopolitical and economic backdrop, gold’s upward momentum is likely to persist, with any dips being viewed as potential buying opportunities in the market.”

As always, diversification remains key, and those considering precious metals should ensure it aligns with their broader portfolio goals.