Gold and Silver Prices: During the week starting Monday, January 5th, there will likely be significant fluctuations in the prices of gold and silver. Important US economic data is to blame for this. In addition, since the US invaded Venezuela and captured President Nicolas Maduro, global tensions have increased. Demand for safe-haven assets like gold and silver may rise as a result.
US statistics and the Fed’s perspective
Investors will be keeping a tight eye on important US statistics, such as the unemployment rate, December ADP employment data, and ISM manufacturing data. Statements made by different Federal Reserve officials will also be significant since they may provide hints about the future of monetary policy and the short-term trajectory of bullion prices.
Gold prices could continue to fluctuate during the next week, according to Pratamesh Mallia, DVP-Research (Non-Agri Commodities and Currencies) at Angel One. He claims that the market is now experiencing both bullish and negative influences.
Events in Venezuela generate geopolitical issues.
The US onslaught on Venezuela on Saturday, according to experts, may increase market instability. On suspicion of drug trafficking, US President Donald Trump has ordered the arrest of Venezuelan President Nicolas Maduro and his spouse. Commodity markets may see aggressive trading on Monday as a result of this event, reflecting the escalating global unrest.
One analyst claims that this event has the potential to send shockwaves across international markets. Given that Venezuela has the greatest oil reserves in the world, concerns about supply interruptions might drive up the price of gold and crude oil.
🌍 Geopolitical Tensions & Safe-Haven Demand
- Trigger: US Venezuela conflict impact on gold
- Market Effect: Higher volatility in bullion prices
- Investor Action: Shift toward safe haven demand gold silver
- Key Risk: Oil supply disruption fears
- Outcome: Short-term aggressive trading expected
After a record high, gold corrects
After reaching a record high in late December, gold prices dropped last week. The Multi Commodity Exchange (MCX) saw a 2.94 percent decline in gold futures, or ₹4,112. After reaching a record high of ₹140,444 per 10 grams earlier in the day, gold dropped more than 3 percent to settle at ₹135,761 per 10 grams on Friday.
Pratmesh Mallia claims that profit-booking at higher levels and reduced liquidity because of the year-end and Christmas vacations were the reasons for the drop in gold prices during the week ending January 2, 2026. According to him, the price of gold fluctuated between ₹134,000 and ₹140,000 per 10 kilos last week. The market continued to be erratic and was under intense selling pressure throughout this time.
Silver also saw significant swings.
Silver prices fluctuated similarly as well. Over the course of the week, MCX silver prices dropped by ₹3,471, or 1.45 percent. After reaching a record high of ₹2,54,174 per kilogram earlier, silver dropped ₹17,858, or 7.02 percent, to end at ₹2,36,316 per kilogram on Friday.
Comex gold futures dropped $223.1, or 4.9%, to settle at $4,329.6 per ounce on Friday in the global market, which was curtailed by the holiday week. Last week, international silver prices dropped by 8%, or $6.18. It dropped 14.1 percent, or $11.65, to end at $71.01 an ounce after earlier hitting a new record high of $82.67 an ounce.
📉 Gold and Silver Price Volatility 2026
- Gold Trend: Correction after record highs
- Silver Trend: Sharp swings with higher downside risk
- MCX Impact: Heavy weekly price fluctuations
- Global Cue: Holiday-thinned international markets
- Theme: gold price volatility 2026
Gold is still in high demand as a safe haven.
The resilience of gold above $4,300 per ounce, according to Pankaj Singh, creator and lead researcher at Smallcase Manager and Smart Wealth AI, indicates that investors are still cautious and that demand for safe havens endures despite a slowdown in US inflation.
He clarified that once CME Group raised gold futures margins, leveraged holdings had to be lowered. Silver prices were also influenced by the deliberate selling that resulted from this on Comex. Pankaj Singh claims that capital reallocation, geopolitical concerns, and monetary uncertainty are still significant. The demand for gold investments may rise as a result.
Forecast for Gold and Silver in 2026
Gold prices might increase by 10 to 60 percent in 2026, according to Pankaj Singh. A correction of up to 20% is possible at this time, however.
He said that silver has a 5 to 30 percent downside risk. However, growing industrial demand also offers substantial upside potential. Prices might increase by up to 40% from present levels if supply is still limited.
In conclusion
Gold and silver markets are expected to remain volatile as investors assess US economic data, Federal Reserve signals, and geopolitical developments such as the US Venezuela conflict. Persistent uncertainty continues to support safe-haven demand, shaping the gold price volatility 2026 and the silver price outlook 2026.
Disclaimer
This article is for informational purposes only and does not constitute investment advice. Commodity markets are subject to risks arising from economic data, geopolitical events, and market sentiment. Readers should consult qualified financial professionals before making any investment decisions.
