On the geopolitical front, tensions in the Middle East, and in Eastern Europe, have added a risk premium, supporting safe-haven demand. The precious metal briefly retreated nearly 1 per cent post-policy but continues to hover close to historic peaks as investors weigh Fed guidance and geopolitical risks, Modi added.
Riya Singh, Research Analyst, Commodities and Currency at Emkay Global Financial Services, projected a medium-term upside for the yellow metal.
“A medium-term target for gold prices in the international markets is at USD 3,850-4,000 per ounce level, especially if US inflation continues to cool and Fed cuts proceed as projected,” she said.
Meanwhile, silver has outpaced gold in recent weeks, displaying a sharper trajectory on the back of investment inflows and industrial demand.