Gold Holds Steady, Silver Slides: Precious Metals React to Fed Pause and Geopolitical Tensions

Unknown Apr 02, 2026 2 Views

Gold prices opened modestly lower on June 20, 2025, following the Federal Reserve's decision not to raise interest rates and mixed global cues holding the yellow metal in a tight trading range. Compared to this, silver prices declined more sharply, evidencing a loss of momentum between the tw...

Gold Futures and Spot Prices:

Gold futures started at $3,387.10 an ounce, a small 0.08% decline from Wednesday's close and 0.6% from the week. Nevertheless, gold has risen 5.2% in the past month and has risen 45.4% in the past year, indicating its strength as a safe-haven asset.

Domestic Market Trends:

Indian gold prices fell by about ₹530 on June 20, with 24-carat gold quoted at ₹9,886 per gram in Mumbai and ₹98,690 per 10 grams in Delhi. Prices of silver fell 1.35% to ₹1,06,430 per kilogram in the domestic market, which is an indication of underlying weakness in the white metal.

Silver's Recent Performance:

Although down in the recent slide, silver has been among the best performers of 2025, up 28% year-to-date to $37.12 an ounce earlier this week. The recent correction, though, is an indicator of volatility as investor sentiment and industrial demand shift.

Global Factors:

Gold's appeal remains supported by ongoing Middle Eastern geopolitical tensions that have created safe-haven demand. However, dovish Fed policy to cut rates and a strengthening U.S. dollar are capping further gains. As one analyst states, enhanced hostilities in international conflicts can soon restore gold's bullish trend.

Prediction:

Major banks like Citi anticipate that gold will move into the $3,100-$3,500 per ounce range in Q3 but warn that it could dip below $3,000 levels by the end of 2025 if investment demand declines. Silver, however, will move into $40 per ounce within 6-12 months on the back of supply deficits and robust industrial demand.

"Gold is generally regarded as a safe haven, especially in times of geopolitical stress and financial volatility."

Source: Yahoo Finance, Angel One, Reuters, CBS News, CNBC

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