Gold, Silver Tied to Crude Oil Prices as Imports Costly for Indian Buyers
Gold and silver prices are expected to remain linked to crude oil in the short term, according to Chirag Thakkar, co-founder of Amrapali Gujarat. He anticipates a decline in crude prices to $85-90 per barrel, which would lead to increased buying opportunities for both metals.
Crude has fallen from $102-104 per barrel last week to its current price range of $94-95 per barrel. Thakkar attributes the stability in gold and silver prices to the US Federal Reserve's rate decision being already priced in, making crude the main driver of market movements.
The higher import duty in India has pushed some buyers to compare prices with Dubai, but there are rumors that the government may rationalize the duty on gold and silver given current crude prices and currency levels. This is reportedly linked to India's dollar reserves reaching a milestone in recent months.