Topic 4: BULLION: LOOPING AROUND

April 2025 was a rollercoaster month for the bullion market, marked by record highs, sharp reversals, and diverging trends between gold and silver. Amid global uncertainty, both metals saw significant investor interest, though gold grabbed the spotlight with historic price action. Gold prices soared to a record high of $3,500 per ounce mid-April as investors flocked to safe-haven assets. The rally was fuelled by a mix of geopolitical tensions, central bank buying—led by China—weakening U.S. Treasury yields, and a softening U.S. dollar. Domestically, 24K gold briefly crossed ₹10,000 per gram, an all-time high in several Indian cities. However, the rally was short-lived. As strong U.S. jobs data tempered expectations of early Fed rate cuts and Treasury yields rebounded, gold saw a sharp correction, falling to around $3,250 globally and ₹9,800 per gram in India by month-end. The retreat was also driven by technical selling, profit booking, and a cautious market mood ahead of Akshaya Tritiya. Despite the pullback, gold remained substantially up year-to-date, underscoring its ongoing appeal in uncertain times. Silver tracked gold’s trajectory but with more resilience in the second half of the month. By the end of April, silver was trading near $32.5 per ounce internationally and around ₹100,400 per kg in India, reflecting steady gains. Silver's strength was driven by a surge in industrial demand, particularly from the green energy, EV, 5G, and semiconductor sectors. It also benefited from its traditional role as a safe-haven and inflation hedge, as well as its relative undervaluation compared to gold. Supply concerns and currency depreciation further lifted domestic prices. While the gold-silver ratio remained elevated, silver outperformed gold in the latter half of April, supported by solid fundamentals and a more stable demand outlook. April highlighted the volatile nature of the bullion market, where sentiment, geopolitics, and macroeconomic signals can swiftly shift the narrative. With central bank demand strong, geopolitical tensions unresolved, and industrial use cases for silver expanding, both metals remain key assets to watch in the coming months.



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