On the Multi Commodity Exchange (MCX), gold futures climbed 1.32 per cent to ₹1,51,726 per 10 grams, while silver futures gained 2.62 per cent to reach ₹2,50,724 per kilogram.
Market experts said the rise in gold prices could revive investor interest in the yellow metal, though fund managers advised investors to remain careful while taking exposure to silver because of its higher volatility.
In Mumbai’s physical market, gold was quoted at ₹1.50 lakh per 10 grams, up from ₹1.47 lakh per 10 grams a day earlier. Silver prices also strengthened, trading at ₹2.46 lakh per kilogram, around ₹6,000 higher than Tuesday’s level.
Vedika Narvekar, Research Analyst for Commodities and Currencies at Anand Rathi Shares & Stock Brokers told ET that gold prices recovered mainly because of buying at lower levels along with some moderation in crude oil prices as concerns surrounding the Strait of Hormuz appeared to ease slightly. According to her, softer oil prices helped reduce immediate worries around inflation, lending some support to gold.
She, however, noted that gains in gold may remain limited as geopolitical uncertainty has not fully faded and periodic disruptions continue to keep markets cautious. Narvekar added that broader macroeconomic factors are currently having a bigger influence on bullion prices. Elevated US bond yields and expectations that the Federal Reserve could maintain higher interest rates for an extended period are acting as a drag on gold, since the metal does not offer any yield.
On the demand front, she pointed out that central bank buying continues to provide long-term support despite some fluctuations in the short term. Although central banks were net sellers of nearly 30 tonnes of gold in March, largely due to sales by Turkey, overall purchases during the first quarter remained positive. China and Poland have continued to add gold to their reserves, indicating that diversification into bullion remains intact over the longer term.
Narvekar expects gold prices to stay within a broad range as markets continue to weigh geopolitical developments against the outlook for global interest rates.
Satish Dondapati, Fund Manager at Kotak Mutual Fund, said silver prices have corrected sharply, falling nearly 36.3 per cent from their peak in dollar terms. In India, silver exchange-traded funds have declined about 35 per cent on average from the record highs touched in January 2026.
He said the decline has been driven by several factors. Silver prices had rallied rapidly within a short span, making a correction inevitable as investors booked profits. At the same time, rising US bond yields and a stronger dollar reduced the attractiveness of silver. Geopolitical tensions and elevated crude oil prices have also strengthened expectations that monetary policy could remain tight for longer.
Dondapati recommended that investors adopt an asset allocation strategy, keeping around 15-20 per cent exposure to precious metals. Within that allocation, he advised conservative investors to maintain a relatively smaller exposure to silver because of its sharper price swings. He also suggested avoiding lump-sum investments and instead investing gradually over time through a systematic approach for long-term participation.
