Gold Prices Dip Amid Dollar Strength; Silver Rates Edge Higher – Experts Reveal Investment Strategies for Precious Metals
By Nishant Kumar | Updated 17 July 2025, 09:29 AM IST
In early trade on Thursday, gold prices declined following a surge in the US dollar and subdued global market cues, while silver prices inched upward, bolstered by healthy demand. Market experts shared insights on the ongoing volatility in precious metals and provided strategic recommendations for investors navigating these fluctuations.
Gold Price Trends Weaken as US Dollar Gains Momentum
Gold futures for August delivery on the Multi Commodity Exchange (MCX) fell by 0.30%, trading at ₹97,490 per 10 grams around 9:05 AM IST. The dip was primarily attributed to a firmer US dollar and easing trade tensions, which reduced gold’s appeal as a safe-haven asset. The dollar index rose 0.20%, making gold more expensive for holders of other currencies and dampening overseas demand.
Adding to the market’s relief, former US President Donald Trump dismissed speculation about his intentions to remove Federal Reserve Chair Jerome Powell—a move that investors feared would undermine confidence in the US financial system and weaken the dollar’s standing as a safe currency. Powell’s current term expires in May 2026. Despite Trump’s prior criticisms of Powell’s policies on interest rates, the Federal Reserve is widely expected to maintain rates through at least September.
Meanwhile, US inflation data revealed mixed signals. The Producer Price Index (PPI) remained flat in June, but Consumer Price Index (CPI) figures surged—the highest increase since February—further fueling uncertainty around monetary policy.
Silver Prices Benefit from Robust Demand
In contrast, silver futures for September delivery on MCX saw a modest gain of 0.10%, trading at ₹1,11,748 per kilogram. This rise was supported by strong physical demand and an ongoing silver rally that continues to draw investor interest despite its recent gains.
Expert Analysis and Recommendations
Carsten Menke, Head of Economics and Next Generation Research at Julius Baer, advised caution on gold, noting that the metal is consolidating amid a lack of catalysts to ignite another sharp rally. He pointed out that easing trade tensions and diminishing recession fears have softened safe-haven buying, though central bank purchases remain a positive underpinning for gold in the longer term.
Regarding silver, Menke highlighted the metal’s recent strong performance relative to gold, reflected in the gold-to-silver ratio’s decline to around 85 from above 100 earlier this year. “Silver’s catch-up potential appears largely exhausted. While we have raised our 3- and 12-month targets to $37 and $40 per ounce respectively, our outlook is now more neutral,” he said.
Manoj Kumar Jain of Prithvifinmart Commodity Research recommended buying gold and silver on price dips. Jain suggested a buying range around ₹97,300 for gold with a stop loss at ₹96,850 targeting ₹98,100. For silver, he recommended purchases around ₹1,10,800 with a stop loss of ₹1,09,900 aiming for ₹1,12,800. Jain also provided technical support and resistance levels for the session:
- Gold (USD per troy ounce): Support between $1,340–$1,327; Resistance $1,374–$1,389
- Silver (USD per troy ounce): Support $37.80–$37.40; Resistance $38.40–$38.70
- Gold (MCX INR): Support ₹97,440–₹97,100; Resistance ₹98,080–₹98,400
- Silver (MCX INR): Support ₹1,10,800–₹1,10,000; Resistance ₹1,12,400–₹1,13,100
Rahul Kalantri, Vice President of commodities at Mehta Equities, echoed similar support and resistance points. According to him, gold has support around $1,315–$1,290 and resistance at $1,360–$1,380 per ounce, while silver rests on support near $37.40–$37.10 and resistance around $38.20–$38.45. In Indian rupee terms, Kalantri cited gold’s support levels between ₹97,320 and ₹96,980, with resistance at ₹97,980–₹98,280. For silver, support is at ₹1,10,280–₹1,09,450 and resistance at ₹1,11,950–₹1,13,000. —
Trade Talks and Global Developments
Adding to the complex market environment, US-India trade negotiations appear promising. On July 16, Trump expressed optimism about an imminent trade deal with India, potentially easing tariff-related concerns that have weighed on markets.
Conclusion: Navigating Precious Metals in a Volatile Environment
The precious metals market is currently navigating mixed signals: a stronger dollar and easing trade tensions pressure gold prices, while silver enjoys support from robust demand and a narrowing price gap with gold.
Investors are advised to monitor dollar strength and US economic indicators closely, as these factors will continue to influence price movements. Market analysts recommend strategic buying on dips, with carefully defined stop losses and profit targets to manage risks amid ongoing volatility.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should consult with certified financial advisors before making investment decisions, as market conditions can change rapidly.
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