Gold and silver prices are facing a volatile week as investors digest inflation data from major economies, Federal Reserve signals, and geopolitical developments in West Asia. Key inflation readings from India, the US, the UK, the Eurozone, and Japan, along with US jobs data and minutes from the Federal Open Market Committee meeting, will be closely watched. Chinese industrial production figures could also impact silver prices, given its industrial applications.
On the Multi Commodity Exchange (MCX), gold futures for December delivery dropped ₹5,847, or 4.10%, over the past week to close at ₹1.36 lakh per 10 grams. Silver futures fell ₹8,791, or nearly 5%, to settle at ₹1.76 lakh per kg. Jateen Trivedi, VP Research Analyst at LKP Securities, noted that gold's decline was driven by a strong US dollar, elevated Treasury yields, and persistent inflation concerns.
Internationally, Comex gold futures for December delivery tumbled $188.6, or nearly 5%, to finish at $3,886.3 per ounce. Silver fell $2.82, or 5.43%, to settle at $49.12 per ounce. Pranav Mer, Senior Vice President at JM Financial Services, attributed the losses to hawkish Fed commentary and higher-than-expected inflation numbers. The World Gold Council reported that exchange-traded fund investors have been cautious this quarter, though central banks remain net buyers.
Rajeev Sharan, Head of Research at Brickwork Ratings, expects international gold prices to range between $3,850 and $4,000 per ounce in the near term. He highlighted that wedding demand in India and steady central bank buying could limit further downside, despite short-term rate worries. The outlook remains cautious, with volatility expected to stay elevated due to rupee movements and global bullion trends.