Gold Prices Expected to Outpace Silver Amid Weakening Global Economic Conditions

Gold and Silver Prices in India Surge Amid International Gains

India's gold and silver markets traded higher on Thursday, mirroring gains in the international bullion market. The rise in precious metal prices was attributed to a softer US dollar and hopes of a potential US-Iran peace deal, which eased concerns over persistently high inflation and prolonged elevated interest rates.

According to data from the Multi Commodity Exchange (MCX), the MCX gold rate for June futures contracts surged by ₹1,265, or 0.83%, to ₹1,53,397 per 10 grams. Meanwhile, the MCX silver price for July futures jumped by ₹6,505, or 2.57%, to ₹2,59,770 per kg.

In the international market, spot gold prices rallied 1% to $4,738.86 per ounce, marking the highest level since April 27. US gold futures for June delivery rose 1.2% to $4,748.50 per ounce. Spot silver prices also advanced 2.6% to $79.31 per ounce.

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Comparison of Gold and Silver Prices

Historically, gold tends to outperform during periods of macroeconomic instability due to its strong safe-haven appeal. Analysts believe that gold is likely to outperform silver in the near term as weakening global economic conditions and geopolitical uncertainties continue to drive investors toward safe-haven assets.

According to Vandana Bharti, analysts at Choice Broking, central bank buying remains robust, with official gold purchases reaching 244 tonnes in the first quarter of 2026. Physical investment demand through bars and coins also jumped 42% year-on-year. Bharti highlighted that central banks' buying remains robust, with official gold purchases reaching 244 tonnes in the first quarter of 2026.

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In contrast, silver faces pressure from weaker industrial demand due to slowing global manufacturing activity and tighter financial conditions. Slowing manufacturing activity, softer construction demand, and tighter financial conditions could weigh on silver more heavily if global growth continues to weaken, said Bharti.

Kaveri More, Commodity Analyst - Technical Research at Choice Broking, also believes that gold is better positioned to outperform silver in the current environment. "In a weak global macroeconomic backdrop marked by slowing growth, inflation concerns, and geopolitical risks, gold is poised to decisively outperform silver because of its pure safe-haven status, while silver remains vulnerable to industrial demand erosion," More said.

Technical Outlook for Gold and Silver

MCX gold prices are holding strong support in the ₹1,47,500 – ₹1,48,000 range, while resistance is seen near ₹1,56,000, said Bharti. A breakout above ₹1,56,000 could open the door toward ₹1,63,500. For silver, support is placed near ₹2,25,000 – ₹2,32,000, while resistance is seen around ₹2,85,000.

Unless industrial demand improves significantly, gold is likely to remain relatively stronger than silver in the coming weeks, said Bharti. According to More, a breakout above ₹1,55,500 could push MCX gold prices toward initial targets of ₹1,60,300 and eventually ₹1,66,350, although supply pressure near ₹1,65,000 may cap gains.