Gold, Silver Outlook: Moderately Bullish for FY27 Amid Global Uncertainty

• Precious metals gold and silver are projected to remain moderately bullish in FY27 due to geopolitical tensions, trade wars, and recession fears driving safe-haven demand.
• FY26 saw significant gains: silver surged over 142% and gold rallied around 67%, fueled by Trump's tariff war, central bank purchases, and global economic uncertainty.
• Despite strong performance, bullion prices experienced corrections in March, with gold declining 7% and silver slumping 15% on the Multi Commodity Exchange.
• Silver's exceptional FY26 performance is attributed to a structural supply deficit, record demand from solar PV and EV sectors, and increased institutional investment.
• Central bank demand, particularly from India, Poland, and Turkey, is expected to continue supporting gold prices in FY27 as countries diversify reserves away from the US dollar.

Key Questions Answered

Will gold and silver prices continue rising in FY27?

Gold and silver prices are expected to remain moderately bullish for FY27. However, some experts predict a potential fall in gold prices below ₹1 lakh by 2027.

How do global tensions affect precious metal demand?

Global tensions can lead to both increased demand for precious metals as safe-haven assets and decreased demand due to factors like a stronger US dollar and rising yields.

What factors could limit gold's gains next year?

Elevated interest rates from major central banks may limit gold's sharp gains. A stronger US dollar and shifting interest rate expectations are countering safe-haven demand.