Gold & Silver Prices to Rise: Economic Survey

New Delhi, Jan 29 (PTI) The Economic Survey on Thursday said inflation is unlikely to be a concern in the next fiscal year even though prices of precious metals -- both gold and silver -- are likely to continue to increase due to their sustained demand as safe-haven investments amid global uncertainties.

It said the inflation outlook remains benign, supported by favourable supplyside conditions and the gradual pass-through of GST rate rationalisation.

Looking ahead, the inflation outlook remains favourable, with projections of inflation staying within target ranges, supported by strong agricultural output, stable global commodity prices, and continued policy vigilance.

However, risks from currency fluctuations, base metal price surges and global uncertainties persist, warranting ongoing monitoring and adaptive policy responses.


"The prices of precious metals, both gold and silver, are likely to continue increasing due to their sustained demand as safe-haven investments amid global uncertainties, unless a durable peace is established and trade wars are resolved," the Survey said, adding that India's inflation rate -- headline and core excluding precious metals -- will likely be higher in FY27 than in FY26.

However, it is unlikely to be a concern, it added.

The Survey said the RBI and the International Monetary Fund (IMF) have projected a progressive increase in headline inflation for the next fiscal year, bringing the levels within the targeted range of 4 per cent (+/- 2 per cent).

The IMF has projected an inflation rate of 2.8 per cent in FY26 and 4 per cent in FY'27. The RBI has forecast headline inflation for Q1 and Q2 of FY27 is 3.9 and 4 per cent respectively.