Gold, silver prices outlook: Inflation data, Fed signals and West Asia tensions to guide bullion this week

Detailed summary

Gold and silver prices may remain volatile this week as investors track inflation data from major economies, US Federal Reserve signals, jobs data and developments in West Asia.…

Gold and silver prices are bracing for a bumpy week, as investors assess inflation data from major economies, Federal Reserve signals and developments in West Asia, analysts said.

Investors will track inflation readings from India, the US, the UK, the Eurozone, and Japan, as well as minutes of the Federal Open Market Committee meeting, commentary from Federal Reserve officials and US jobs data.

Chinese industrial production prints will also be in focus, as they could influence industrial metals, particularly silver, they added.

Developments in West Asia will remain another key factor. Any further escalation in tensions between Washington and Tehran could push crude oil prices higher, intensifying inflation concerns and strengthening expectations of tighter monetary policy.

"The near-term outlook remains cautious to bearish, with volatility expected to stay elevated. On the domestic front, MCX prices will also remain influenced by rupee movements and international bullion trends," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

On the Multi Commodity Exchange (MCX), gold futures for December delivery declined by ₹5,847, or 4.10%, over the past week to close at ₹1.36 lakh per 10 grams.

Silver also tumbled ₹8,791, or nearly 5%, to settle at ₹1.76 lakh per kg.

"Gold extended its corrective trend this week to close around ₹1.36 lakh per 10 grams on the MCX, registering negative weekly returns of over 4% amid a strong US dollar, elevated Treasury yields and persistent inflation concerns," Trivedi said.

In international markets, Comex gold futures for December delivery tumbled $188.6, or nearly 5%, over the past week to finish at $3,886.3 per ounce. Silver fell $2.82, or 5.43%, to settle at $49.12 per ounce.

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