New Delhi, July 17, 2025 – Gold prices fell in early trade on Thursday, weighed down by weak global cues and a stronger U.S. dollar. In contrast, silver prices edged higher, supported by strong demand in the spot market.
As of 9:05 AM, MCX Gold (August 5 contract) was trading 0.30% lower at ₹97,490 per 10 grams, while MCX Silver (September 5 contract) rose 0.10% to ₹1,11,748 per kg.
Dollar Strength and Global Sentiment Impact Gold
Gold prices declined amid a rise in the U.S. dollar index, which climbed 0.20%, making gold more expensive for holders of other currencies. Additionally, investor anxiety eased after U.S. President Donald Trump dismissed rumors of removing Federal Reserve Chair Jerome Powell, preserving confidence in the central bank's independence.
Powell, whose term runs until May 2026, has faced criticism from Trump for not lowering interest rates. However, the Fed is widely expected to hold rates steady at least until September 2025, even though the U.S. Consumer Price Index (CPI) in June rose to its highest since February, while the Producer Price Index (PPI) remained flat.
Trade Optimism Boosts Silver Demand
Trump also indicated that the U.S. is close to finalizing a trade agreement with India, reducing global trade tensions and boosting demand for industrial metals like silver. The positive outlook supported silver prices, which saw continued buying interest in the domestic market.
Expert Views: What Should Investors Do?
Carsten Menke – Julius Baer
Menke noted that gold is currently consolidating and lacks a new trigger to resume its upward rally.
“Easing recession risks and trade tensions have softened safe-haven demand. Central bank buying remains healthy but less aggressive,” he said.
Regarding silver, Menke added that the catch-up rally has run its course.
“With the gold-silver ratio now around 85 (down from 100), silver no longer appears undervalued relative to gold. We upgrade our price targets to $37 (3 months) and $40 (12 months) per ounce, but revise our outlook to neutral.”
Manoj Kumar Jain – Prithvifinmart Commodity Research
Jain recommends buying on dips:
Support and Resistance (MCX):
International Levels:
Rahul Kalantri – Mehta Equities
Kalantri also provided key levels for the day:
International Market:
Indian Market (INR):
Market Outlook: Volatility Ahead
Experts expect volatility in gold and silver prices to continue in the short term as global cues remain mixed. While gold is consolidating and struggling for a breakout, silver may hold its ground due to strong industrial demand and trade optimism.
Investor Strategy: For now, traders are advised to monitor support levels and look for buying opportunities on dips, keeping an eye on U.S. economic indicators, dollar movements, and any updates on Fed policy or geopolitical developments.
