On March 12, 2025, gold futures saw a slight decline, while silver prices gained. Gold futures for April fell by 0.8% to Rs 86,068 per 10 grams, while silver rose by 0.26%, trading at Rs 98,385 per kilogram.
Investors are closely watching the US inflation data, which is expected to impact the Federal Reserve’s interest rate decisions and influence the outlook for gold.
Gold Futures Fall as Inflation Data Looms
Gold April futures experienced a minor drop, closing at Rs 86,068 per 10 grams after losing Rs 68. However, spot gold prices in the international market remained stable at $2,916.69 per ounce, with US gold futures gaining slightly by 0.1%, reaching $2,922.30.
Tim Waterer, Chief Market Analyst at KCM Trade, mentioned, “Gold is in a ‘consolidation mode’ as investors await the US Consumer Price Index (CPI) report.” This report, due later today, will provide crucial insights for the Federal Reserve’s policy decisions for the remainder of 2025.
Silver Prices Rise Despite Global Market Trends
Silver futures gained 0.26%, reaching Rs 98,385 per kilogram. However, global spot silver prices decreased by 0.5%, closing at $32.76 per ounce. In the broader precious metals market, platinum rose by 0.4%, reaching $978.60, while palladium fell by 0.6%, closing at $940.53.
Inflation and Trade Policies Impact Gold Market
The Federal Reserve’s interest rate policy continues to influence gold prices. Higher interest rates typically reduce the appeal of gold, a non-yielding asset. Additionally, US President Donald Trump’s trade policies, including tariffs on steel and aluminum, have increased inflationary pressures and added to economic uncertainty.
Despite these concerns, gold remains a preferred investment during times of global economic instability. Waterer noted, “Gold will likely stay a favored asset as long as trade wars and growth slowdown fears persist.”
Expert Views on Gold and Silver Performance
Manoj Jain, a commodity expert at India Nivesh, explained, “Gold and silver saw a strong comeback, driven by safe-haven buying and a weaker dollar index. The trend remains volatile.”
He added that on Tuesday, both gold and silver settled positively in international markets, with gold April futures at $2,920.90 per ounce (up by 0.74%) and silver May futures at $33.147 per ounce (up by 1.89%).
In the domestic market, gold futures for April settled at Rs 86,152 per 10 grams (up by 0.86%), and silver May futures were at Rs 98,132 per kilogram (up by 1.73%).
Jain continued, “The rise in gold and silver prices was supported by safe-haven buying after Trump raised tariffs on Canada, alongside the decline in US equity markets. The weakening dollar index, which is nearing five-month lows, also contributed to the positive momentum in precious metals.”
Volatility and Market Outlook
Jain also pointed out that if gold prices manage to sustain above $2,932 per ounce and silver above $33.20 per ounce, further price gains could be expected. He forecasted continued volatility for both metals due to fluctuations in the dollar index, ongoing trade tensions, and the anticipated US inflation data.
He suggested that gold could hold support levels between $2,900 and $2,884 per ounce, with resistance between $2,934 and $2,955. For silver, support is expected at $32.84-$32.55, with resistance at $33.40-$33.70.
In the Indian market, gold is expected to find support between Rs 85,850 and Rs 85,500, while resistance lies between Rs 86,360 and Rs 86,720. Silver support is seen at Rs 97,400 to Rs 96,650, with resistance between Rs 99,000 and Rs 99,800. Jain recommended buying silver at Rs 97,650 with a stop loss at Rs 96,950 and a target of Rs 99,200.
Global Developments and Impact on Precious Metals
The US administration’s continued support for Ukraine, along with a proposed 30-day ceasefire, may ease some geopolitical tensions. However, the long-term impact of these developments on precious metals remains uncertain.
City-Wise Gold Prices in India
As of March 12, 2025, gold prices across major cities in India are as follows:
Mumbai: Rs 88,832.10 (24K), Rs 81,429.43 (22K)
Chennai: Rs 91,464 (24K), Rs 83,842 (22K)
Bangalore: Rs 91,464 (24K), Rs 83,842 (22K)
Hyderabad: Rs 91,464 (24K), Rs 83,842 (22K)
The market continues to fluctuate, with global and domestic factors influencing the price trends of both gold and silver. Investors are advised to stay updated with economic developments, particularly US inflation data, to navigate the market’s volatility.
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