Silver Shines as Gold Prices Dip in Weekend Trade
Global cues, industrial demand and tight supply push silver higher, while gold softens amid profit booking and rate cut expectations.
CHENNAI, Dec 06 : India’s precious metals market saw a contrasting trend on Saturday (December 6), with silver emerging as the clear outperformer while gold prices eased slightly after recent highs.
Domestic 24-karat gold is priced at around ₹13,015 per gram, slipping marginally due to profit booking. Despite this dip, global gold prices remain within the elevated range of recent months, supported by expectations of possible US interest rate cuts and a weaker dollar both of which make gold more attractive to international investors.
Silver, on the other hand, has been on a remarkable upward trajectory throughout 2025. International silver prices recently touched fresh highs as investors increased allocations to precious metals amid global economic uncertainty. In India too, silver rates have climbed sharply, driven by higher import costs and strong domestic demand.
Analysts attribute the silver rally to structural supply constraints since silver is primarily obtained as a byproduct of mining other metals, production has not kept pace with global consumption. Meanwhile, key industries such as electronics, solar energy, and electric vehicles are witnessing robust expansion, pushing industrial demand for silver even higher.
Geopolitical tensions, inflation concerns, currency volatility and weaker market sentiment have further boosted safe-haven buying in both gold and silver. While gold continues to serve as a traditional hedge against inflation, silver’s dual role as an industrial and monetary metal has amplified its appeal.
Looking ahead, much will hinge on global monetary policy. Any move by central banks particularly the US Federal Reserve toward interest-rate cuts could strengthen investment demand for non-yielding assets like gold and silver. Conversely, signs of economic stability or currency strengthening could moderate their upward momentum.
For consumers and investors in Chennai and across India, the current market offers a mix of opportunity and caution. Silver, given its industrial relevance and comparatively lower entry cost, remains attractive. However, with high volatility expected, experts advise timing purchases around price dips or waiting for clearer market cues.
