Gold and silver prices have resumed their upward trajectory on Friday, recovering from a significant correction witnessed in the previous trading session. Despite this rebound, gold remains approximately 3% below its all-time peak, indicating ongoing market volatility.
Precious Metals Experience Volatile Trading Session
Spot gold was trading at $5,400 during Asian trading hours on Friday. This follows a dramatic decline of over 5.7% on Thursday, when the precious metal touched a record high of $5,594.82 before closing slightly lower. Similarly, spot silver gained marginally to trade at $115 on Friday, after plunging 2% from its record high of $121.64 on Thursday.
Both metals experienced a sharp correction as investors capitalized on profits after the remarkable rally. However, they are still poised to achieve their strongest monthly performance since the 1980s, driven by persistent economic and geopolitical uncertainties.
Key Factors Driving the Precious Metals Rally
According to Ponmudi R, CEO of Enrich Money, the ongoing rally in gold and silver continues to be supported by a combination of macroeconomic and geopolitical factors. Heightened geopolitical uncertainty has reinforced demand for safe-haven assets. This includes renewed tariff tensions with key allies, risks surrounding Venezuela and Iran, strategic concerns linked to Greenland, and the increasing probability of a U.S. government shutdown.
This geopolitical backdrop is further complemented by growing safe-haven flows amid signs of slowing global growth, elevated U.S. debt levels, and a structurally weakening U.S. dollar. Persistent central-bank buying, alongside broader de-dollarisation trends, has added to the underlying support for precious metals.
Federal Reserve Policy and Market Expectations
The U.S. Federal Reserve maintained interest rates steady on Wednesday, with market participants now focusing on President Trump's forthcoming announcement of a successor to Fed Chair Jerome Powell, whose term concludes in May. Investors broadly anticipate the central bank's next rate cut to occur in June, which could provide additional support for non-yielding assets like gold.
In this context, even modest corrections are attracting robust buying interest, leaving the broader outlook firmly bullish, as noted by Ponmudi.
Analyst Forecasts and Price Levels for Gold and Silver
Global brokerage firm UBS, as quoted by Reuters, raised its gold price forecast to $6,200 for the first three quarters of the year, while expecting prices to ease to $5,900 by the end of 2026. This upward revision reflects continued confidence in the precious metal's performance.
Speaking on the outlook for gold and silver rates today, Rahul Kalantri, VP Commodities at Mehta Equities, provided detailed technical levels. Gold rate today has support at $5,340 and $5,220, while resistance is at $5,525 and $5,600. Silver rate today has support at $112.10 and $108.75, while resistance is at $118.15 and $122.00.
Domestic Market Perspective on MCX
On the Multi Commodity Exchange (MCX), the gold price today has support at ₹1,63,050 and ₹1,60,310, while resistance is at ₹1,70,850 and ₹1,73,950. Silver price today has support at ₹3,80,810 and ₹3,74,170, while resistance at ₹3,91,810 and ₹3,98,470.
These technical levels provide crucial guidance for traders and investors navigating the current market environment, where geopolitical tensions and economic indicators continue to shape price movements.
