Gold, silver demand to stay strong amid world crises, macro risks: Reports

Central bank buying, geopolitical risks and tight supply likely to support prices of precious metals, say analysts

Wars and macroeconomic uncertainty are expected to continue to support gold and silver prices but short-term volatility may remain high, according to recent commodity outlook reports.

 

Investors may consider accumulating precious metals gradually rather than making lump-sum bets, said Tata Asset Management, which drew data from the World Gold Council and the ICICI Direct monthly commodity outlook for March 2026.

 

Gold, silver gain attention

 

Commodity reports attribute the recent volatility in precious metals largely to rising geopolitical risks and global economic uncertainty. Gold and silver prices have increased sharply amid tensions in West Asia and disruptions in key trade routes.

 

 

The war between Iran and the United States-Israel alliance may prolong uncertainty in global markets, according to ICICI Direct’s commodity outlook. The report said that disruptions to energy supply chains and higher oil prices could increase inflationary pressure across several countries.

 

ICICI Direct said that continued tariff-related volatility and trade policy uncertainty could keep financial markets unsettled — a situation that historically supports demand for safe-haven assets such as gold.

 

Structural factors supporting gold

 

The World Gold Council highlighted structural drivers for gold demand:

 

Central bank buying: Central banks worldwide have nearly doubled their gold purchases over the past decade as they diversify reserves away from fiat currencies.

 

Currency uncertainty: Rising fiscal deficits and ongoing de-dollarisation trends are increasing the appeal of gold as a monetary hedge.

 

Supply constraints: Limited fresh supply of the metal continues to support prices over the long term.

 

The research also notes sustained investor interest in gold exchange-traded funds (ETFs) in India, with inflows continuing despite some profit-taking episodes.

 

Silver’s industrial demand story

 

Silver’s outlook is supported by a different but equally strong set of fundamentals. According to the ICICI Direct commodity outlook, more than 60 per cent of silver demand comes from industrial uses, which means prices are closely linked to manufacturing and technology demand.

 

The report also highlights that the metal has entered its sixth consecutive year of structural supply deficit, with inventories on the Shanghai Futures Exchange nearing decade-low levels. This tight supply situation, combined with rising industrial demand, particularly from China, could support prices.

 

Investment approach

 

Despite the positive long-term outlook, the research emphasises that sharp rallies in precious metals can be followed by corrections. Due of this volatility, the reports recommend that investors adopt a staggered investment strategy when increasing exposure to gold or silver.

 

The outlook compiled by Tata Asset Management states that declines triggered by factors such as a stronger US dollar or temporary easing of geopolitical tensions could offer opportunities for gradual accumulation, especially for investors with a medium- to long-term horizon.