Gold and Silver Prices Set to Extend Record Rally as Global Inflation Data Takes Centre Stage

Gold and silver prices are expected to continue their record‑breaking momentum in the coming week as investors closely track global macroeconomic data and inflation indicators that could influence central bank policy decisions. Analysts note that the strong momentum in bullion is supported by shifting rate expectations, a weaker dollar, and rising market volatility.

Key Macro Data Driving Bullion Trends

The upcoming week will be crucial for precious metals, with markets set to absorb a series of significant economic announcements, including:

• Inflation data from India, the US, Europe, and the UK

• Global manufacturing and services PMI readings

• US non‑farm payroll figures, weekly jobless claims, housing indicators, and consumer sentiment data

According to analysts, these numbers will shape expectations for future monetary policy and directly impact investor appetite for safe‑haven assets like gold and silver.

Pranav Mer, Vice President, EBG – Commodity & Currency Research at JM Financial Services, highlighted the data-heavy week ahead, noting that “momentum will remain positive as traders focus on key data from China, followed by inflation numbers from India, the US, and the UK, along with provisional manufacturing and services PMI data from across regions.”

Record-High Levels on MCX

Gold futures on the Multi Commodity Exchange (MCX) surged by Rs 3,160, or 2.42 percent, over the past week, closing at fresh all-time highs. Silver futures have also continued their strong upward trajectory, supported by rising industrial demand and global geopolitical uncertainty.

A combination of factors has propelled this rally:

• The US Federal Reserve’s recent rate cut

• Liquidity‑boosting measures from global central banks

• A sharp decline in US Treasury yields

• Pressure on the US dollar index

Investor Sentiment Remains Firm

“Gold prices continued their positive momentum after Fed rate cuts and liquidity boost measures. However, the central bank maintained a cautious tone, signalling it would wait for more data before additional easing,” Mer added.

This cautious stance triggered a sell-off in US Treasuries and weighed on the dollar, both of which typically support higher gold prices. With inflation still above central bank comfort zones and economic uncertainty persisting, precious metals are likely to remain attractive to both retail and institutional investors.

Outlook: Strength Likely to Continue

Analysts expect gold and silver to maintain their upward bias in the short term. Much, however, will depend on how upcoming economic data influences expectations around central bank easing cycles.

If inflation cools faster than expected or economic activity weakens, bullion could see further support as markets price in additional rate cuts in 2026. Conversely, stronger‑than‑expected macro data may slow the rally but is unlikely to reverse it entirely given the current market structure.

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