West Asian Tensions Send Gold and Silver Prices Sliding

Gold and silver prices have declined in recent days due to tensions in West Asia. The metals had gained significantly in August but have been volatile since September. Despite this, experts believe that the future outlook for both gold and silver remains positive, especially as the festival season approaches.

According to commodity expert Ajay Kedia, the market is under long liquidation with open interest declining 9.47% to 6,570 while prices fell ₹1,417. Gold now finds support at Rs 150,575, and a break below could expose Rs 149,855.

The dollar movement and US interest rate expectations remain important for precious metals. The dollar has reached a two-month high, making dollar-denominated gold more expensive for buyers using other currencies. Meanwhile, recent signals from the Fed indicate a firmer stance on interest rates.

Gold prices are projected to remain above current levels in 2026 and 2027. According to a J.P. Morgan report, gold could reach USD 6,000 per ounce by the end of 2026, with prices expected to reach USD 6,300 per ounce in 2027.