In a recent analysis of metal market trends, Parthiv Jhonsa from Anand Rathi Institutional highlighted the current bullish outlook for gold and silver, despite mixed signals across the broader metals sector.

Precious Metals Outlook

Jhonsa expressed a positive stance on both gold and silver, noting their distinct roles in the market:

• Gold: Primarily serves as an investment-oriented metal
• Silver: More industrial-focused, with applications beyond investment

This bullish outlook comes against a backdrop of varied performance across other metals, suggesting that precious metals may be benefiting from their unique market positions.

Contrasting Trends in Industrial Metals

While gold and silver maintain their strong positions, other metals in the market are experiencing diverse trends:

Aluminium Market Dynamics

• Record profits for smelters in China and India over the past two years
• Low alumina costs (around $320.00)
• Sustainability concerns at current price levels due to affordability issues

Copper Supply Challenges

• Limited new mine supply expected, with Hindustan Copper being an exception
• Ongoing supply disruptions supporting higher prices

Steel Market Pressures

• Prices hit multi-month lows during India's festive season
• Improvement not expected until early November
• Rising coking coal costs (up to $210.00) may impact steel maker margins

Market Implications

The contrasting trends across different metals highlight the complex nature of the current market. While industrial metals face various challenges, the bullish outlook for gold and silver suggests that investors may be turning to precious metals as a hedge against market uncertainties.

As the second most widely used metal after steel, aluminium's price sustainability above $2,800.00 raises questions about its long-term affordability and potential impact on various industries. Meanwhile, the positive sentiment towards gold and silver indicates their continuing appeal as both industrial materials and investment vehicles in the current economic climate.

Investors and industry observers will be closely watching how these trends develop, particularly as global economic factors continue to influence metal prices and demand across sectors.

Gold and silver prices experienced a decline from their record highs reached on Dhanteras, despite continued strong demand during Diwali celebrations in India. This shift in precious metal prices comes amidst easing trade tensions between the United States and China, and recent expert advice to book profits.

International Market Overview

In the international market, gold and silver futures saw a significant decrease:

• Gold futures: Down over 3%
• Silver futures: Dropped around 6%

The decline is attributed to improving trade relations between the US and China, ahead of a planned meeting between President Trump and President Xi Jinping.

Domestic Indian Market

Despite the festive season demand, gold prices varied across major Indian cities. Here's a breakdown of 24-carat gold prices per 10 grams in key locations:

Silver Prices in India

Silver prices also showed variation across Indian cities, ranging between Rs 167,200.00 to Rs 167,395.00 per 1,000 grams. Notably, silver futures at India's Multi Commodity Exchange declined 10% from Friday's highs.

Expert Analysis

Goldilocks Global Research Founder Gautam Shah recommends aggressive profit booking in gold and silver following their unprecedented price rises. Shah now favors equities over precious metals, projecting:

• Nifty 50 may reach 27,500 over 12 months
• Nifty 50 could hit 28,400 over 18-24 months
• Strong gains expected in mid-cap and small-cap stocks

The retreat in gold and silver prices from their Dhanteras highs, despite strong Diwali demand, suggests that global factors may be currently outweighing domestic consumption patterns.

Recent Performance Comparison

From Diwali to Diwali:

• Silver delivered 60% returns
• Gold provided 56% returns
• S&P 500 gained 17%
• Dow Jones rose 11%
• India's Nifty 50 increased 1.5% in dollar terms

The underperformance of India's Nifty 50 is attributed to a weaker rupee, elevated valuations, and moderated earnings growth.

Investors and consumers may want to keep a close eye on international developments and expert advice as they navigate the precious metals and equity markets in the coming months.