Gold, silver remain moderately bullish for FY27 amid global uncertainty

Precious metal prices in the domestic markets are expected to remain moderately bullish in the fiscal year 202627 as geopolitical tensions trade war fears and growing recession risks globally are likely to bolster safehaven demand even as elevated interest rates may limit sharp gainsOn the domestic front during FY26 silver futures surged by Rs 141431 or 1422 per cent from Rs 99461 per kg recorded on April 1 2025 while gold soared by Rs 60258 or 67 per cent from Rs 90503 per 10 grams recorded during the same periodThe outlook follows one of the strongest years for precious metals in decades Silver surged more than 142 per cent during FY26 while gold rallied around 67 per cent driven by Trumps tariff war geopolitical tensions robust central bank purchases tightening supply conditions and global economic uncertaintyThe outlook for gold and silver for fiscal 202627 will remain moderately bullish Since the global economy is going through a rough patch due to geopolitical tensions trade wars and fear of global recession demand for safehaven assets will rise Aamir Makda Commodity amp Currency Analyst at Choice Broking told PTI in an interviewDespite the strong gains bullion prices witnessed sharp corrections toward the end of the fiscal In March alone gold prices declined by Rs 11343 or 7 per cent while silver slumped by Rs 41752 or 15 per cent on the Multi Commodity ExchangeOn recent price corrections he said Historically golds demand as a safehaven asset will likely increase in the second phase of war situations when dollar gains get limitedHowever Makda cautioned that higherforlonger interest rates from the US Federal Reserve and other major central banks may limit aggressive upside in bullion pricesOn silvers exceptional performance in FY26 Makda attributed it to a structural supply deficit persisting for five consecutive years record demand from the solar photovoltaic and electric vehicle sectors and a surge in institutional investment into ETFs that amplified price moves in the relatively smaller silver marketLooking ahead Makda expects silver to remain moderately bullish in FY27 with domestic prices likely to trade between Rs 27535 lakh per kilogram depending on currency fluctuationsIn international exchanges the white metal prices may range between USD 85 and USD 100 per ounce he saidMakda also expects central bank demand to remain a key support for gold prices in FY27He said the trend is set to continue in FY27 with demand expected to average between 750850 tonnes in 2026 and likely to remain the same in 2027Economies such as India Poland and Turkey will continue to lead the charge as they are replacing US dollar reserves with gold to bolster monetary sovereignty and hedge against geopolitical sanctions he addedOn crude oil Makda projected a shift towards surplus in FY27 due to rising nonOPEC production and slowing global demand growthThe anticipated drop in oil prices may negatively impact precious metals particularly gold and silver by reducing inflationary pressures that typically support these assets Additionally softer oil prices may strengthen the rupee making gold and silver cheaper domestically he saidRegarding the US dollar Makda expects the currency to remain volatile amid uncertainty over Federal Reserves policyHowever he cautioned that a stronger dollar could cap gains and trigger corrections particularly in silverOverall Makda said geopolitical risks central bank demand and industrial consumption will continue to underpin bullion prices in FY27 despite intermittent volatilityThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever