Can gold prices outperform silver amid weak global macroeconomic outlook?
Gold is likely to outperform silver in the near term as weakening global economic conditions and geopolitical uncertainties continue to drive investors toward safe-haven assets, analysts said.
Gold and silver prices in India traded higher on Thursday, tracking gains in international bullion markets, where prices rose for a third consecutive session on the back of a softer US dollar. Hopes of a potential US-Iran peace deal eased concerns over persistently high inflation and prolonged elevated interest rates, improving sentiment toward precious metals.
MCX gold rate for June futures contracts surged ₹1,265, or 0.83%, to ₹1,53,397 per 10 grams, while MCX silver price for July futures jumped ₹6,505, or 2.57%, to ₹2,59,770 per kg.
In the international market, spot gold prices rallied 1% to $4,738.86 per ounce after gaining nearly 3% in the previous session to hit the highest level since April 27. US gold futures for June delivery rose 1.2% to $4,748.50 per ounce. Spot silver prices also advanced 2.6% to $79.31 per ounce.
The prolonged US-Iran war in the Middle East has weakened the global growth outlook and intensified inflationary concerns amid rising geopolitical uncertainty. Historically, gold tends to outperform during periods of macroeconomic instability due to its strong safe-haven appeal.
Silver, meanwhile, derives support from both investment demand and industrial usage. However, in an environment of slowing global growth, silver may underperform gold because of its higher exposure as an industrial metal.
Gold Likely to Outshine Silver
Analysts believe gold is likely to outperform silver in the near term as weakening global economic conditions and geopolitical uncertainties continue to drive investors toward safe-haven assets.
“Escalating tensions involving Iran, the US, and Israel continue to support safe-haven demand for gold, especially with risks surrounding the Strait of Hormuz. At the same time, elevated energy prices and inflation concerns are reinforcing gold’s role as a strategic liquidity and reserve asset,” said Vandana Bharti of SMC Global.
She highlighted that central bank buying remains robust, with official gold purchases reaching 244 tonnes in the first quarter of 2026. Physical investment demand through bars and coins also jumped 42% year-on-year.
“In contrast, silver faces pressure from weaker industrial demand due to slowing global manufacturing activity and tighter financial conditions. Slowing manufacturing activity, softer construction demand, and tighter financial conditions could weigh on silver more heavily if global growth continues to weaken,” Bharti added.
However, she highlighted that silver could still witness sharp rallies during risk-on phases, supported by strong structural demand from solar energy, electric vehicles, and AI-related industries.
Kaveri More, Commodity Analyst - Technical Research at Choice Broking, also believes that gold is better positioned to outperform silver in the current environment.
“In a weak global macroeconomic backdrop, gold is poised to decisively outperform silver because of its pure safe-haven status, while silver remains vulnerable to industrial demand erosion. The gold-silver ratio at around 60:1 reflects this relative strength and has historically favoured gold during risk-off phases,” More said.
Gold Price Outlook
On the technical front, Bharti said MCX gold prices are holding strong support in the ₹1,47,500 – ₹1,48,000 range, while resistance is seen near ₹1,56,000.
“A breakout above ₹1,56,000 could open the door toward ₹1,63,500. For silver, support is placed near ₹2,25,000 – ₹2,32,000, while resistance is seen around ₹2,85,000. Unless industrial demand improves significantly, gold is likely to remain relatively stronger than silver in the coming weeks,” she said.
According to More, breakout above ₹1,55,500 could push MCX gold prices toward initial targets of ₹1,60,300 and eventually ₹1,66,350, although supply pressure near ₹1,65,000 may cap gains.
“Key support levels at ₹1,48,000 – ₹1,41,400 continue to offer value-buying opportunities, supported by bullish global triggers such as a pause in US Federal Reserve rate hikes or sustained dollar weakness. However, a fall below ₹1,48,000 would turn the outlook bearish,” More added.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
About the Author
Ankit Gohel is the Deputy Chief Content Producer at Livemint, specialising in financial markets, macroeconomics, and regulatory developments. With a strong focus on equity markets, primary issuances, and policy-driven market movements, he brings clarity to complex financial developments for investors and market participants. <br><br> With nine years of experience in business and financial journalism, Ankit’s approach is rooted in the belief that market reporting should go beyond headlines — connecting data, policy, and ground realities to deliver actionable insights. His work consistently bridges the gap between institutional analysis and investor understanding. <br><br> Ankit has spent three years at Livemint, where he currently helps drive market coverage, editorial strategy, and high-impact financial stories. Prior to this, he worked with leading business news networks such as CNBC-TV18, ET Now, TickerPlant News Service where he built deep expertise in stock market analysis, macroeconomic trends, primary markets, and coverage of key regulators including the RBI and SEBI. <br><br> Over the years, he has covered market cycles across bull and bear phases, IPO booms, liquidity shocks, and major policy shifts that reshaped investor sentiment. He has interviewed fund managers, corporate leaders, and policymakers, translating their perspectives into sharp, data-backed narratives. Ankit combines speed with accuracy — ensuring timely, credible, and insight-driven financial journalism that empowers both retail and institutional audiences.
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