Gold Soars as Fed Softens Stance on Interest Rates
The precious metals market is seeing a strong rally driven by the US Federal Reserve's softer stance on interest rates and expectations of robust demand during India's upcoming festive and wedding season. According to Metals Focus senior consultant Harshal Barot, international gold prices could reach $4,800-$5,000 per ounce by the end of 2026.
Record-high gold prices have affected jewellery sales volumes in India, but sentiment among Indian retailers and manufacturers has improved significantly. Orders received at recent jewellery industry events were reportedly much stronger than last year.
Silver is also expected to remain on an upward trend, although it may move more slowly than gold in the near term. Metals Focus sees the possibility of silver reaching $85-$90 per ounce over the longer term.
Limited import availability remains a key concern for India's silver market. Import quotas available to traders are reportedly below normal seasonal demand, which could tighten domestic supply and create higher premiums for Indian buyers.