After a record-breaking rally in Samvat 2081, gold and silver have lost some of their sparkle in Samvat 2082. Gold is up 15% so far this Samvat year gone by, while silver has gained nearly 20%. These are healthy returns, but a far cry from the blockbuster gains of the previous year. And the mood has since turned: both metals have since retreated sharply from their January peaks, with gold down around 19% from its January high of ₹1,75,231 per 10 grams and silver has fallen 51% from its January high of ₹3,79,983 per kg.
On Thursday, MCX Gold closed at ₹1,43,184 per 10 grams and MCX Silver closed at ₹1,87,490 per kg.
Yet, as investors gear up for special Muhurat trading to mark the start of Samvat 2083—a symbolic festive session traditionally seen as an auspicious time to reset portfolios and initiate new long-term positions—market participants see potential for a rebound. Analysts recommend gold for safe-haven stability, silver for growth, and a staggered buying approach to cushion against the inevitable volatility.
The recent pullback has done more than dent prices. Higher US bond yields, a firm dollar, and expectations of interest rates staying higher have prompted some fund managers to turn cautious and pare their exposure to gold, even as its long-term role as a portfolio diversifier remains intact.
Somnath Mukherjee, chief investment officer at ASK Private Wealth, is tactically underweight on gold, citing rising volatility and weakening diversification benefits. Gold’s safe-haven appeal has come under question as its correlation with other asset classes has weakened, while cyclical shifts in these relationships have made them less reliable indicators of future prices, he said.