On the Multi Commodity Exchange (MCX), gold contracts for April delivery increased by ₹851, or 0.55%, to ₹1.54 lakh per 10 grams. Analysts attributed the rise to fresh positions built by traders amid steady spot demand and seasonal buying interest.
Silver prices also advanced, with May delivery contracts gaining ₹2,058, or 0.82%, to ₹2.53 lakh per kilogram. Uncertainty around US trade policy and supportive global trends lifted sentiment for the metal, market participants said.
In the international market, gold futures rose 0.77% to $4,828.17 per ounce in New York, while Comex silver futures climbed 1.84% to $90.44 per ounce.
Demand expectations ahead of Akshaya Tritiya — a key occasion for gold purchases in India — are also supporting sentiment in the domestic market.
Short-term pressure, long-term strength
Satish Dondapati, Fund Manager at Kotak Mutual Fund, said recent price movements reflect competing macro factors.
“Gold prices have fallen around 8–10% recently, which may seem surprising given ongoing global tensions. However, the main reason is high interest rates and a strong US dollar, which are currently putting pressure on gold prices. Despite this short-term weakness, gold is still up around 45–50% compared to last year, showing that the overall long-term trend remains strong,” he said.
He added that the near-term outlook remains mixed. “In the short term, gold prices may be volatile, especially if inflation rises, mainly due to higher oil prices, which generally supports gold. However, higher inflation also forces central banks to keep interest rates high, which negatively impacts gold. This creates a mixed environment where prices may remain volatile and range bound.”
Gold’s role in portfolios
Ankur Punj, Managing Director and Business Head at Equirus Wealth, said gold continues to hold relevance as a strategic asset.
“Gold remains a core strategic asset in 2026: it is best viewed as a long-term diversifier and hedge rather than a short-term trading vehicle. Market expects price of gold much higher over next three years. Especially in volatile geopolitical times, gold should be used as a hedge,” he said.
He added that gold allocation should typically form 10–15% of portfolios for investors.
Structural drivers remain intact
According to InCred Money, gold’s long-term appeal in India remains underpinned by strong household ownership and macroeconomic factors. Indian households are estimated to hold 11–16% of all the gold ever mined above ground, reflecting its entrenched role as a store of value.
The firm noted that while gold witnessed a sharp rally between March 2025 and March 2026, driven by central bank buying, geopolitical tensions, and retail demand, the recent correction reflects short-term macro pressures rather than a shift in fundamentals.
It added that continued central bank accumulation, supply constraints, and persistent global uncertainties continue to support the broader outlook for the metal.
–With agencies inputs