Gold, silver range-bound: What’s the right strategy for investors now

Gold and silver prices are trading in a narrow range, but the current phase reflects consolidation rather than weakness, with fundamentals continuing to support the outlook, according to Renisha Chainani, Head of Research at Augmont.She said retail investors should avoid waiting for ideal entry points and instead adopt a staggered investment strategy.

“Range-bound movement in a structural bull market typically signals consolidation ahead of the next move. Waiting for the perfect dip often proves expensive,” Chainani said.
She recommends deploying investments in three to four tranches—starting at current levels and adding on dips. Key accumulation zones are seen around ₹1.47 lakh–₹1.48 lakh per 10 grams for gold and ₹2.30 lakh–₹2.35 lakh per kg for silver on MCX.Allocation strategy

Gold and silver serve distinct roles in portfolios. Gold is seen as a defensive asset and inflation hedge, while silver is more volatile and driven by industrial demand.

For moderate investors, a 70:30 gold-to-silver allocation is suggested. Aggressive investors may tilt towards 60:40 to capture higher upside, while conservative investors may prefer an 80:20 mix favouring gold.Higher allocation to gold

The recommended allocation to gold has increased in recent years. Moderate investors may consider 15–20% exposure, while conservative investors can hold 10–15%. Aggressive investors may go up to 20–25% across gold and silver combined, as per Chainani.

At current levels near ₹1,52,000 on MCX, prices remain elevated but are supported by factors such as inflation, central bank buying and geopolitical uncertainty.

Key triggers to watch

Investors should track key indicators including price breakouts, inflation data, movements in the US dollar index, interest rate expectations and geopolitical developments before increasing exposure.

Overall, a phased investment approach and balanced allocation remain key to navigating the current phase in precious metals, she added.