Gold and Silver Prices Tumble, Sparking Analysis on Indian Stock Impact

Global gold prices have plunged by 10.6%, reaching a low of $3,932 per troy ounce on Wednesday, down from a high of $4,398 recorded on October 20, 2025. Similarly, silver prices have crashed by 12.7%, falling to $46.93 per troy ounce from a peak of $53.765 on October 17, 2025. These significant declines raise questions about their impact on Indian gold-related stocks.

Technical analysis provides insights into the outlook for several Indian companies. Titan stock appears favorably positioned, with a positive short-term bias above ₹3,600, targeting ₹4,150. Kalyan Jewellers is at a crucial juncture, testing resistance at its 200-Day Moving Average (200-DMA), with potential targets at ₹585 or a downside risk to ₹400. P N Gadgil Jewellers shows a short-term upward trend, with a target of ₹721. Muthoot Finance is testing support levels, with potential for a pullback to ₹3,350 or a slide to ₹2,735. Manappuram Finance is also testing support, with resistance around ₹285 and a potential downside target of ₹243.

Impact The falling prices of gold and silver could lead to lower raw material costs for jewelry manufacturers, potentially boosting their profit margins. However, significant commodity price drops can also sometimes signal broader economic slowdowns or reduced consumer spending, which might negatively affect sales volumes for companies like Titan and Kalyan Jewellers. For finance companies like Muthoot Finance and Manappuram Finance, which deal with gold-backed loans, fluctuations in gold prices can impact the value of their collateral and their overall financial health. Technical indicators suggest mixed short-term prospects for these stocks, with support and resistance levels being key determinants of their immediate price action.

Rating: 6/10

Heading Definitions: - Troy ounce: A unit of weight commonly used for precious metals, approximately equal to 31.1 grams. - Technical Charts: Graphs used by traders to analyze past price movements and patterns to forecast future price trends. - Support: A price level where a downtrend is expected to pause due to increased demand. - Resistance: A price level where an uptrend is expected to pause due to increased selling. - 200-Day Moving Average (200-DMA): A technical indicator representing the average closing price of a stock over the past 200 trading days, often used to identify long-term trends. - 100-DMA: The average closing price of a stock over the past 100 trading days. - 100-Week Moving Average (100-WMA): A technical indicator showing the average closing price of a stock over the past 100 trading weeks, used for longer-term trend analysis. - Fibonacci half-yearly retracement: A technical tool using horizontal lines to identify potential support and resistance levels based on the Fibonacci sequence over a half-yearly period. - Super trend line: A technical indicator that helps identify the trend direction and potential buy/sell signals. - Bollinger Bands: A volatility indicator consisting of three lines plotted around a stock's price, used to measure market volatility.