Gold and silver prices saw a modest rebound in overseas markets on Friday, October 16, following a significant drop earlier in the week. On COMEX, gold futures rose to $4,177.50 per ounce, up $7.40 or 0.18%, while silver futures climbed to $57.430 per ounce, up $0.274 or 0.48%. However, the outlook remains uncertain due to factors like tighter US monetary policy, inflation concerns, and geopolitical tensions in West Asia.
In the domestic market, gold prices fell for the fourth straight session on October 15, dropping ₹900 to ₹1.49 lakh per 10 grams in New Delhi. Silver prices also declined by ₹6,000 to ₹2.15 lakh per kilogram. The stronger rupee and weak physical demand contributed to this downward trend.
Analysts highlight that US inflation and interest rate expectations are key drivers. A higher-than-expected inflation reading could push Treasury yields and the dollar higher, pressuring gold and silver. Justin Khoo, Senior Market Analyst at VT Markets, noted that markets remain sensitive to US inflation data and Federal Reserve policy shifts.
Geopolitical risks in West Asia, including tensions involving Iran, Saudi Arabia, and Yemen's Houthi movement, are providing some support as safe-haven demand rises. However, Prithviraj Kothari of RiddiSiddhi Bullions Ltd. cautioned that these impacts may not be sustained due to opposing market forces.
Looking ahead, Kothari sees gold recovering from $4,080 per ounce, with silver finding support around $55, $56. Khoo identified $4,280 as a key level for gold and $58.95 and $57.40 for silver. The near-term direction will depend on inflation data and Federal Reserve signals.