Gold vs silver: Gold prices, on Thursday, opened sharply lower on Thursday following the US Federal Reserve’s policy announcement, while silver prices also slipped over one percent.

On the MCX, gold futures began 1.27 per cent down at ₹1,19,125 per 10 grams, compared to the previous close of ₹1,20,666. Silver futures opened 0.4 per cent lower at ₹1,45,498 per kg against the previous close of ₹1,46,081.

By 9:20 AM, gold was trading down ₹1,827, or 1.51 per cent, at ₹1,18,839 per 10 grams, while silver had fallen ₹1,411, or 0.97 per cent, to ₹1,44,670 per kg.

In the international market, gold prices edged higher, supported by a mild decline in the US dollar, as investors awaited potential progress in trade negotiations between US President Donald Trump and Chinese President Xi Jinping.

“The metal has declined from recent levels as global factors like currency strength and declining geopolitical tensions have cooled down industrial and investment demand. Gold and silver have both had corrections in price recently, however gold is demonstrating safer & steady demand than silver’s more uncertain state and movement of industrial metals,” said Aksha Kamboj, Vice President, India Bullion & Jewellers Association (IBJA) and Executive Chairperson, Aspect Global Ventures.

Gold and Silver have fallen in recent sessions, with Gold seeing its biggest one day fall in more than 12 years.

According to market experts, gold remains the traditional safe-haven asset. It performs well during economic uncertainty, inflationary periods, or when central banks ease monetary policy. Demand from global central banks and investors has supported prices in 2025.

Ross Maxwell, Global Strategy Lead at VT Markets, believes that as bond yields rise and geopolitical tensions ease, gold’s short-term appeal has softened, hence we have seen some profit taking from its record highs. However, its ability to preserve wealth during market turbulence still makes it an attractive option for longer-term investors.

Silver, however, is also an industrial commodity. Its price is influenced by both investment sentiment and industrial demand from sectors like solar energy, electric vehicles, and electronics. When global manufacturing strengthens, silver can often outperform gold. However, during economic slowdowns, gold will be the better option for investors, Maxwell explained.

“Both still offer good opportunities for investors, and it is more a question about weighting rather than which one you should be buying. The weighting of each in your portfolio is determined by your outlook and your goals. Gold offers safety and stability, ideal for investors expecting continued uncertainty or slower growth and looking for long-term wealth preservation. Silver, on the other hand carries higher risk but potentially greater returns if industrial demand rebounds, better for more speculative traders. In a falling-price environment, long-term investors may consider buying silver on dips, while using gold as a hedge against economic shocks.

In essence, choose gold for stability and silver for growth potential, and remain dynamic to the market conditions and the factors that will drive each individual price,” Maxwell said.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.