Mumbai: Gold and silver prices edged higher on Friday after a turbulent trading session, as investors cautiously returned to the market following sharp losses earlier in the week. The gains came despite continued volatility and tighter trading conditions after fresh margin hikes by the CME Group.
Spot gold rose modestly, supported by bargain buying after recent declines, while silver recovered part of its steep fall that had seen prices slide nearly 9 percent in the previous session. Traders said the rebound reflected short covering and selective buying rather than a clear shift in market sentiment.
The CME Group announced another increase in margin requirements for gold and silver futures, citing extreme price swings and heightened risk. Higher margins mean traders must put up more money to hold positions, a move that often cools speculative activity but can also add to short term volatility.
Markets remain unsettled as investors weigh a stronger US dollar, concerns over global economic growth, and recent sell offs in technology stocks. These factors have kept precious metals trading in wide ranges, with sharp moves in both directions.
Analysts said gold continues to benefit from its safe haven status during periods of uncertainty, while silver remains more exposed to swings in industrial demand and speculative flows.
With global markets still on edge, traders expect gold and silver to remain volatile in the near term, closely tracking currency movements, interest rate expectations, and signals from major economies.