Gold, Silver Prices to Track Crude Oil in Short Term

Gold and silver prices are expected to track crude oil in the short term, according to Chirag Thakkar of Amrapali Gujarat. He anticipates crude falling to $85-90 per barrel, which would bring more buying on dips in both metals. The two metals have moved together over the past week, with gold and silver prices remaining relatively stable despite the US Federal Reserve's rate decision.

Thakkar believes that the current import duty in India has pushed some buyers to compare prices with Dubai. He has heard talk on the street that the government could rationalise the duty on gold and silver, given crude prices and the currency. However, this is unconfirmed, and Thakkar notes that it would require a maintainable level of crude prices for the next six to seven months.

The festival demand for gold and silver jewellery is expected to increase after Shradh, which starts in the next 15-20 days. Thakkar expects demand this quarter to fall short of last year's level, but notes that matching last year's demand would be a milestone for the whole value chain.

Thakkar also mentioned that digital gold and silver platforms are growing at about 15% month on month, with investors moving to exchange-traded funds (ETFs) as an alternative to physical metal. He expects artefacts to take a larger share of silver demand over the next one to two years.