Gold, Silver May Slip Further if Oil Crosses $120: Experts
Chennai: Gold and silver prices have come under pressure in recent weeks, and analysts say the trend could continue if crude oil prices surge sharply.
Since the start of the US–Iran conflict, gold has corrected by over 8%, while silver has dropped more than 16%. Market experts attribute this to a stronger US dollar and reduced safe-haven demand, which are weighing on bullion prices.
Typically, geopolitical tensions push gold higher. However, in the current scenario, rising oil prices are increasing inflation concerns. This is keeping interest rates elevated and strengthening the dollar, both of which tend to limit gains in gold and silver.
Analysts warn that if crude oil prices rise beyond $120 per barrel and remain there, bullion could see further downside of up to 10% in the near term. Under such conditions, gold prices may fall below the $4,400 level, while silver could slip under $67.
On the other hand, if oil prices ease below $90 per barrel, it could support a recovery in precious metals. In that case, gold may climb above $5,000 and silver could move past $80 levels.
Technical indicators also point to continued volatility. Experts note that if key support levels are broken, selling pressure could intensify further in both gold and silver.
Overall, analysts advise investors to stay cautious in the short term, as bullion prices remain sensitive to oil movements, interest rate expectations, and ongoing geopolitical developments.
