Gold and silver prices are likely to remain closely linked to crude oil movements in the near term, with buying interest expected to increase if bullion prices see a correction, Chirag Thakkar of Amrapali Group told media.

According to Thakkar, crude oil has emerged as a key factor influencing precious metals prices, while the US Federal Reserve’s recent rate decision had a limited immediate impact as it was largely factored into market expectations.

He said gold and silver could move broadly together over the next six months, with lower prices potentially encouraging additional buying. He also pointed to discussions around a possible rationalisation of import duties on gold and silver, although he said such expectations remained unconfirmed.

Domestic jewellery demand has been increasing month on month, Thakkar said. He expects buying activity to gain momentum after the Shradh period as consumers enter the traditional festive buying season. However, he expects demand during the current quarter to remain below last year’s level.

Thakkar also highlighted growing adoption of digital gold and silver platforms, which he said have been recording month-on-month growth. Investors are increasingly using ETFs and digital platforms as alternatives to holding physical metal.

He added that silver demand is being supported by jewellery, investment and household artefacts, with silver idols and decorative products also contributing to consumption.