Gold prices are expected to maintain their upward momentum in the coming week, driven by safe-haven demand and expectations of policy easing by the US Federal Reserve, while silver may witness consolidation after a stellar rally, according to analysts. Investors’ attention will turn to a string of key global macroeconomic data, including inflation figures from major economies, as well as the Personal Consumption Expenditures (PCE) index, GDP growth, PMI readings and jobless claims, which will provide fresh cues on the Fed’s policy outlook.
Macro triggers and global events will remain in sharp focus. “The focus will be on the upcoming economic numbers from China, crucial from an industrial metals perspective. Among other developments, US President Donald Trump’s speech at the World Economic Forum and the Supreme Court judgement on trade will be most important to watch,” said Pranav Mer, Vice President, EBG Commodity & Currency Research, JM Financial Services Ltd. On the Multi Commodity Exchange (MCX), gold futures climbed ₹3,698, or 2.7 per cent, over the past week, hitting a record ₹1,43,590 per 10 grams on Wednesday.
Domestic gold prices rose 2.7 per cent for the week, partly supported by a weaker rupee. The yellow metal later pared some gains on Friday amid profit-booking and long-liquidation, as the risk premium eased following the US President’s softer tone on Iran, better-than-expected jobs data, and a firm dollar, Mer said. In the international market, Comex gold futures gained USD 94.5, or 2.09 per cent, last week, closing at USD 4,595.4 per ounce after touching a record USD 4,650.50 earlier in the week.
Geopolitical risks and policy expectations continue to support gold. “Gold prices rose by more than 2 per cent over the week amid geopolitical risk from Iran, driving strong investor interest in safe-haven assets. Expectations of interest rate cuts by the US Fed, a weaker dollar, lower Treasury yields and continued central bank buying remain supportive,” said Prathamesh Mallya, DVP–Research (Non-Agri Commodities & Currencies), Angel One. He projected that gold could move towards ₹1,46,000 per 10 grams on MCX and around USD 4,750 per ounce globally in the coming week.
Meanwhile, silver rallied nearly 14 per cent, or ₹35,037, during the week on MCX, surging to a record ₹2,92,960 per kilogram. Globally, the white metal gained USD 9.2, or 11.6 per cent, to close at USD 88.53 per ounce, after touching a lifetime high of USD 93.75 last week. “Silver’s parabolic rally continued as prices gained more than 11.5 per cent for the week, though profit-booking and consolidation emerged toward the end after reports that the Trump administration won’t levy tariffs on critical miners for now,” Mer said. Silver is expected to remain buoyant, but the sharp rally could face a correction as it nears USD 100 per ounce. “We expect a big corrective move either before or after USD 100 is breached,” he added.
Long-term fundamentals remain constructive despite near-term volatility. Vijay Kuppa, CEO, InCred Money, said gold and silver remain structurally positive, even as near-term volatility is likely. “Central banks are adding gold to reserves, while ETF inflows are absorbing a significant portion of supply. Geopolitical tensions and macro uncertainty reinforce the role of precious metals as portfolio hedges,” he said. Kuppa added that silver’s dual role as a precious and industrial metal, supported by technology, renewable energy and electrification demand, underpins a favourable long-term setup. “After an extended rally, consolidation and corrections are normal. Short-term pullbacks don’t alter the broader trend and are part of price discovery,” he said.
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