Gold and silver prices rebounded slightly on Thursday, October 8, following a sharp decline in the previous session. On COMEX, gold was trading at $4,152.90 per ounce, up 0.29%, while silver rose 0.58% to $60.645 per ounce. Gold had hit a two-month low earlier, and silver also recovered from recent losses.
The market's focus remains on the US Federal Reserve's interest-rate outlook. Higher rates and bond yields typically weigh on gold, as the metal lacks regular income. Fed meeting minutes revealed divisions among policymakers about further rate hikes. Markets currently assign an 18% chance of a rate increase this month and an 80% probability for December, according to the CME FedWatch tool.
The US dollar's strength also plays a crucial role in precious metals' performance. A stronger dollar makes gold and silver more expensive for buyers using other currencies. For Indian investors, rupee movements add another layer of complexity, as domestic gold prices are influenced by both international bullion prices and the rupee-dollar exchange rate.
Long-term support for gold comes from central-bank demand, particularly from China and other emerging markets. Investor participation through financial products like gold ETFs also continues to grow. In India, high gold prices have led to more selective purchasing, with lightweight jewellery and exchange programmes gaining popularity. Overall, India's gold demand fell 6% year-on-year in Q2 2026, but its value surged 50% to a record ₹1.98 lakh crore.
Silver's performance is influenced by industrial demand, in addition to dollar movements, interest rates, and investor sentiment. This makes silver's price movements sometimes diverge from gold's, especially during shifts in economic expectations.
Experts advise investors to avoid short-term market timing and instead adopt a staggered accumulation approach for long-term exposure. Tracking Fed policy, US Treasury yields, the dollar, and rupee movements will be key for gold and silver investors. For silver, industrial demand adds another factor to monitor.