Analysts told news agency PTI that while silver may see a phase of stabilization following its recent rapid surge, gold prices are predicted to remain stable over the next week due to safe-haven demand and increased prospects of policy easing by the US Federal Reserve.
Gold And Silver Outlook Amid Global Economic Signals
Inflation figures from major economies, the US Personal Consumption Expenditures (PCE) index, GDP growth figures, PMI data, and jobless claims are just a few of the many global data events that market participants will be closely monitoring. These data could provide new insights into the future direction of US monetary policy.
Key Global Events Influencing Precious Metals
“From the standpoint of industrial metals, the attention will be on China’s impending GDP figures. The Supreme Court’s ruling on trade and US President Donald Trump’s speech at the World Economic Forum, among other events, would be crucial to follow, according to Pranav Mer, Vice President, EBG-Commodity & Currency Research, JM Financial Services Ltd.
Domestic Gold Price Movement On MCX
Domestically, gold futures on the Multi Commodity Exchange (MCX) reached a record high of Rs 1,43,590 per 10 kilos on Wednesday after rising by Rs 3,698, or 2.7%, over the previous week.
Due in part to the rupee’s decline versus the dollar, gold prices on the domestic market increased by 2.7% throughout the course of the week. Later on Friday, profit-booking and long-liquidation caused the yellow metal to lose some of its gains as the risk premium decreased in response to the US President’s softer stance on Iran, better-than-expected jobs data, and a strong dollar, according to Mer.
🟡 Gold Market Weekly Highlights
- MCX Record High: Rs 1,43,590 per 10 kilos
- Weekly Gain: 2.7%
- Key Drivers: Weak rupee, safe-haven demand
- Global Support: Fed rate-cut expectations
- Investor Trend: Central bank & ETF buying
Global Gold Performance And Safe-Haven Demand
Comex gold futures increased USD 94.5, or 2.09 percent, on the global market last week, ending at USD 4,595.4 per ounce on Friday after reaching a new high of USD 4,650.50 earlier in the week.
Due to high investor interest in safe haven assets and geopolitical danger emanating from Iran, gold prices increased by more than 2% over the course of the week. Prathamesh Mallya, DVP-Research, Non-Agri Commodities and Currencies, Angel One, stated that expectations of US Fed interest rate cuts, a declining dollar, lower Treasury yields, and ongoing central bank purchases continue to support the yellow metal.
Gold Price Forecast
Mallya anticipates that gold prices will continue to rise in the foreseeable future, reaching about USD 4,750 per ounce in international markets and Rs 1,46,000 per 10 grams on the MCX.
Silver’s Historic Rally And Market Caution
In contrast, silver experienced a remarkable surge, rising by about 14%, or Rs 35,037, on the MCX over the course of the week to reach a record high of Rs 2,92,960 per kilogram.
After reaching a record high of USD 93.75 last week, silver prices increased USD 9.2, or 11.6%, globally to close at USD 88.53 per ounce.
⚠️ Silver Rally: Surge & Risk Ahead
- MCX Weekly Gain: ~14%
- Record Level: Rs 2,92,960 per kg
- Global High: USD 93.75 per ounce
- Market Action: Profit-booking seen
- Risk Zone: Possible correction near USD 100
Analyst Views On Silver Correction
According to Mer, “Silver’s parabolic rally continued as prices climbed more than 11.5% for the week, although some profit-booking and consolidation were witnessed in the final couple of trading sessions, following rumors that the Trump administration will not be levying tariffs on important miners for now.”
Although silver is probably going to be supported, analysts warned that when prices get closer to the USD 100 per ounce mark, there may be a correction after the dramatic increase. Mer said, “We anticipate a significant corrective action either prior to or following the USD 100 violation.”
Long-Term Outlook For Precious Metals
Despite recent volatility, both gold and silver are structurally sound, according to Vijay Kuppa, CEO of InCred Money.
While ETF inflows are consuming a sizable amount of supply, central banks are increasing the amount of gold in their reserves. Precious metals serve as portfolio hedges because of ongoing macroeconomic uncertainties and geopolitical conflicts, he said.
Regarding silver, Kuppa pointed out that its dual function as an industrial and precious metal sustains long-term demand. Phases of consolidation and price corrections are typical following a protracted rally. Short-term declines are frequently a part of the price-discovery process and do not always alter the larger trend, he continued.
Frequently asked questions
1. Why is it anticipated that gold prices would hold steady next week?
Demand for safe havens, growing anticipation of rate reduction by the US Federal Reserve, central bank purchases, ETF inflows, and persistent geopolitical uncertainty all support gold. Additionally, lower US Treasury yields and a declining dollar provide support.
2. What economic information will affect the price of gold and silver?
US PCE inflation, GDP growth, PMI readings, unemployment claims, and inflation data from major economies are examples of important data. China’s economic figures will also be widely monitored, particularly for industrial metals like silver.
3. After a powerful surge, why would silver prices decline?
The price of silver has increased dramatically, almost parabolically. Because of profit-booking, analysts anticipate consolidation or a corrective action, particularly as prices go closer to the psychologically significant USD 100 per ounce barrier.
4. Are silver and gold still wise long-term investments?
Indeed. Both metals, according to analysts, are still structurally sound. While silver’s dual function as a precious and industrial metal supports long-term fundamentals despite short-term volatility, gold benefits from central bank accumulation and demand hedging.
Conclusion
Expectations of US monetary easing, geopolitical uncertainties, and persistent institutional demand will likely keep gold prices strong in the foreseeable future. Silver may see short-term corrections or consolidation following an extraordinary gain, but its long-term prospects are still favorable. All things considered, precious metals remain crucial as portfolio hedges in the face of worldwide political and economic unpredictability.
Disclaimer
This content is for informational purposes only and should not be considered financial or investment advice. Commodity prices are subject to market risks. Please consult a qualified financial advisor before making any investment decisions.
