Whalesbook
Gold and silver prices in India traded largely steady on Thursday, January 8, following earlier losses this week. This stability reflects a complex interplay of global economic trends and domestic demand dynamics.
24-karat gold was priced at ₹1.38 lakh per 10 grams, while silver stood at ₹2.51 lakh per kilogram. Analysts pointed to rupee appreciation as a significant headwind for local bullion sentiment, even as international cues remained mixed.
Global Economic Cues
Aateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, noted that the week ahead is data-heavy for the United States. Key reports including ADP non-farm employment, non-farm payrolls, and initial jobless claims are expected to inject volatility into gold prices.
Trivedi forecasts gold to trade within a volatile range of ₹1.36 lakh to ₹1.41 lakh per 10 grams in the near term. This suggests caution for traders anticipating sharp price movements based on U.S. economic indicators.
Client Associates, a multi-family office managing over $7 billion in assets, highlighted commodities, particularly gold and silver, as crucial portfolio diversifiers in its Annual Equity Assessment for 2026. The firm's Head of Investment Research, Nitin Agarwal, stressed the importance of asset allocation over market timing, advocating for a balance between growth and risk management to preserve long-term purchasing power.
Precious metals had posted strong performances in 2025, driven by a weaker U.S. dollar, geopolitical tensions, and evolving monetary policies. Central bank purchases fueled gold demand, while silver experienced a sharp rally due to supply constraints and increased industrial usage. However, Client Associates expressed caution on silver, advising against new positions due to an unfavorable risk-reward balance at current levels.
Domestic Economic Strength
Domestically, India's economy is projected to grow by 6.8% in Fiscal Year 2026. This growth is underpinned by robust consumption, strong corporate earnings visibility, and policy measures aimed at boosting household incomes. High-frequency indicators, such as manufacturing and services Purchasing Managers' Index (PMI) readings, remain firmly in expansionary territory, further supported by sustained economic activity indicated by Goods and Services Tax (GST) collections.