Silver Shines as Gold Prices Ease Amid Interest Rate Uncertainty

Gold prices eased on Monday after a strong week of gains, while silver continued to climb as investors weighed their expectations for US interest rates and the value of the dollar. The COMEX gold contract was trading at $4,383 an ounce, down $16.70 or 0.38% from its previous close.

Silver, on the other hand, gained 0.23% to reach $63.645 an ounce. This comes after a strong week for bullion, with international gold futures rising about 7% last week and silver futures gaining nearly 10%.

Analysts expect gold and silver to retain a positive bias in the near term, but with elevated volatility. Pranav Mer, Senior Vice President of EBG, Commodity & Currency Research at JM Financial Services, expects gold to move towards ₹1.57 lakh per 10 grams and silver towards ₹2.80 lakh per kg.

The US jobs report last week was softer than expected, reducing expectations of an immediate rise in borrowing costs and supporting bullion prices. Markets are now turning their attention to the upcoming inflation data due later this week, which could impact gold prices if it is stronger-than-expected.