Gold prices are hovering around ₹1,10,608 in Ahmedabad on the Multi-Commodity Exchange (MCX) on Monday after opening at ₹1,10,402 per 10 grams. In international markets, gold futures are trading around $3,692 per troy ounce as of 10:30 IST. Silver prices, too, extended their rally, climbing to a peak of ₹1,32,135 on the MCX and $42.57 in international markets.

Darshan Desai, CEO - Aspect Bullion & Refinery, says, "With the auspicious beginning of Navratri starting today, domestic markets may hope to see some buying traction, especially after the recent minor correction that could offer an attractive entry point. Despite the current absence of strong upward triggers, ongoing global economic uncertainties are expected to provide continued support for bullion prices."

Besides, bullion prices maintained strong bullish momentum last week, posting fresh record highs. "Gold registered its fifth consecutive weekly rise, closing above the crucial $3,700 mark, while silver notched a seventh straight weekly advance, ending above $43," said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.

"This resilience came despite the recovery in the dollar index and U.S. bond yields. The Fed’s decision to trim rates by 25 bps, coupled with dovish guidance, reinforced market confidence. Meanwhile, persistent central bank purchases, led by China, highlighted ongoing demand amid global uncertainty," added Kalantri.

Analysts observe that, following previous sharp increases, a slight retracement took place, mainly due to profit-taking in anticipation of potential policy shifts from the U.S. Federal Reserve, along with a marginally stronger rupee, which lowers import costs. Nonetheless, the overall trend remains upward: demand continues to be driven by increased buying during festivals, inflation, and geopolitical instability, which sustains gold's appeal as a safe haven.

Analysts believe that although dips may occur in the short term, gold is likely to maintain support levels at or near its current level and could regain momentum if global interest rates fall or inflation remains persistently high.

"Investors continue to be enthusiastic, especially considering silver's dual role as both an industrial metal and a store of value. Imports are ramping back up after having previously pulled back," says Aksha Kamboj, Vice President, India Bullion & Jewellers Association (IBJA) and Executive Chairperson, Aspect Global Ventures. "Demand from coin and bar buyers remains robust, and bulls are feeling bullish that demand will pick up. Forecasters caution that silver could be volatile in the near term, but feel that silver could see renewed upside if global supplies decline or demand from the manufacturing sector and renewable energy sectors improves."