Gold and Silver Prices Remain Range-Bound Amid Global Uncertainty
Key Highlights
- MCX gold futures rose by Rs 1,109, or nearly 1 per cent, last week to settle at Rs 1.51 lakh per 10 grams.
- Silver futures ended the week marginally lower by Rs 122 at Rs 2.25 lakh per kilogram.
- Gold and silver prices are likely to remain range-bound with a mildly positive bias next week.
- US-Iran conflict remains unresolved, with tensions escalating after US President Donald Trump said Washington was considering joining Saudi strikes against Iran-backed Houthi rebels in neighbouring Yemen following an attack on Riyadh's international airport.
Gold and silver prices are expected to remain range-bound with a mildly positive bias next week. As a weakening rupee supports domestic bullion prices amid global market fluctuations.
Investors will also be monitoring inflation data from India, China, and the US for insights into the outlook for precious metals.
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On the MCX, gold futures for December delivery rose by Rs 1,109, or nearly 1 per cent, last week to settle at Rs 1.51 lakh per 10 grams. In contrast, silver futures ended the week marginally lower by Rs 122 at Rs 2.25 lakh per kilogram.
Analysts note that the outlook for gold and silver remains range-bound with a mildly positive undertone. As a decline in the rupee provides a cushion against global price fluctuations. Investors will be closely watching inflation data from these countries for cues on the outlook for precious metals.
Gold futures recorded significant weekly gains, driven by bargain buying at lower levels. Pranav Mer, senior vice president, EBG - commodity and currency research at JM Financial Services Ltd, said that gold futures ended with a weekly gain of more than 1 per cent, on bargain buying at lower levels, recovering from around $4,066 to above $4,200 per ounce.
Geopolitical uncertainty continues to influence bullion prices, with the US-Iran conflict remaining unresolved. Tensions have escalated following a recent attack on Riyadh's international airport. This has sparked concerns about potential US involvement in Saudi strikes against Iran-backed Houthi rebels in neighbouring Yemen.
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Alongside geopolitical developments, currency movements, expectations about US interest rates, and investment demand are likely to remain key factors for gold and silver in the coming week. Investors will assess inflation readings from India.
China, and the US, as well as Chinese trade data and comments from Federal Reserve officials, for further indications about the interest rate outlook and its potential implications for precious metals.
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I write about the forces shaping business and the global economy, from startup growth and changing markets to international trade and policy. My work focuses on breaking down complex developments into clear, practical insights and understanding what they could mean for businesses, investors, and the wider economy.
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