Gold, silver prices next week: What investors should watch amid global uncertainty
Gold and silver prices are anticipated to remain range-bound with modest support from rupee fluctuations. Investors will focus on upcoming inflation data from India, China, and the US. Additionally, trade data from China and Federal Reserve officials' speeches will be monitored closely. Geopolitical tensions, particularly involving the US and Iran, may also impact market sentiment. Overall,…
Investors should closely monitor gold and silver prices for next week, as they are anticipated to remain in a narrow range with a slight positive inclination amid global uncertainty, according to analysts. The weakness in the Indian rupee is providing support to domestic bullion prices, mitigating the impact of global price fluctuations.
Jateen Trivedi, VP research analyst at LKP Securities, noted that gold prices on the Multi Commodity Exchange (MCX) surged nearly 1% last week to settle at Rs 1.51 lakh per 10 grams, while silver futures on MCX declined marginally by Rs 122 to Rs 2.25 lakh per kilogram. Trivedi explained that the recovery in gold prices was driven by a weaker US dollar, easing bond yields, and improved geopolitical sentiment, along with a fall in crude oil prices that alleviated immediate inflation concerns.
The rupee's depreciation further bolstered domestic bullion prices by increasing the landed cost of imported gold, enabling MCX gold to stay supported even when international prices faced pressure. Overseas, December gold futures on Comex climbed by $54, or 1.3%, last week to close at $4,216.3 per ounce, while silver futures increased by more than 1% to settle at $61.05 per ounce.
Pranav Mer, senior vice president at JM Financial Services Ltd, attributed the international gold price gains to bargain buying at lower levels, which followed a recovery from around $4,066 to above $4,200 per ounce. He added that most of the gains occurred in the final two trading sessions of the week, as the dollar stabilized around the 102 level and US Treasury yields softened their recent increases.
Silver also rebounded over the last two sessions, benefitting from gold's performance and positive momentum in industrial metals like copper and zinc. However, the upside was constrained by worries that high prices might dampen demand as investors seek alternatives. Analysts emphasized that geopolitical uncertainty, currency movements, expectations about US interest rates, and investment demand would be crucial factors influencing gold and silver prices in the coming week.
Investors will closely examine inflation readings from India, China, and the US, along with Chinese trade data and comments from Federal Reserve officials, to gauge the interest rate outlook and its potential repercussions for precious metals.
Written by urgent.news from Times of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
