Gold touched ₹1,44,400 per 10 grams and silver reached ₹1,89,399 per kg in the latest trading session. Prices later fell as investors started booking profits. Experts suggest that those holding metals should focus on their long-term financial goals and portfolio allocation instead of reacting to these sharp, short-term price movements.
Gold and silver witnessed sharp price movements in the latest trading session, with MCX gold touching ₹1,44,400 per 10 grams before settling at ₹1,43,106. Silver climbed to ₹1,89,399 per kg but closed lower at ₹1,87,015.
The pullback suggests that investors are booking profits at elevated levels, even as the broader rally remains supported by a softer US dollar and changing geopolitical expectations.
Internationally, December gold futures on COMEX rose 0.50% to $4,135.20 per ounce in early trading, while silver gained 0.92% to $53.18, outperforming the yellow metal.
However, subsequent trading showed signs of weakness, with spot gold declining 0.6% to $4,114.48 and spot silver slipping 0.5% to $53.14.
Should investors book profits now?
For investors holding gold or silver ETFs, the decision should depend on portfolio allocation, investment horizon and financial goals rather than short-term price movements.
Those whose precious-metal holdings have grown significantly beyond their intended allocation may consider booking partial profits and reallocating the proceeds to underweight assets.
For instance, an investor targeting a 10% allocation to precious metals may find that rising prices have pushed the exposure to 15%. Rebalancing could help restore the original asset mix without exiting gold or silver completely.
However, investors holding these metals for long-term diversification may not need to sell simply because prices have reached elevated levels.
DO READ: Gold falls 21% globally but only 15% in India: How the rupee protected investors
Is silver becoming riskier than gold?
Silver has outperformed gold in the latest rally, but its sharper movements also make it more volatile.
Unlike gold, which primarily benefits from investment demand and its safe-haven appeal, silver is influenced by industrial consumption, including electronics, solar energy and manufacturing.
Consequently, silver prices can experience deeper corrections when economic growth expectations weaken.
Investors should therefore avoid increasing silver exposure solely because it has recently delivered stronger returns.
Should fresh investors buy at current prices?
Fresh investors may consider staggered purchases rather than deploying a large lump sum at elevated prices.
Systematic investments through gold and silver mutual funds or periodic ETF purchases can spread entry prices across market conditions, although they cannot eliminate losses.
What could trigger the next correction?
US inflation data and Federal Reserve policy expectations remain important near-term triggers.
Higher interest rates generally increase the opportunity cost of holding non-yielding bullion, potentially weighing on prices.