Bullion prices are likely to remain under pressure next week as investors track developments in the US-Iran conflict, movements in crude oil prices and inflation data for cues on the outlook for interest rates, analysts said.
The focus will be on inflation prints from China, the US, Germany, Japan and India. Investors will also closely track speeches by Federal Reserve officials and US employment data.
Chinese economic indicators will be important for industrial metals, they added.
Geopolitical developments will remain a key driver after US President Donald Trump confirmed fresh military strikes on Iran, while claiming that Washington had made “a lot of progress” in negotiations with Tehran, adding another layer of uncertainty.
The domestic commodities market will remain closed during the morning session on Tuesday due to Diwali-Balipratipada.
“Gold and silver’s momentum remains down as investors will focus on the inflation data from China, the US, Germany, Japan, India, etc along with some Fed officials’ commentary,” said Pranav Mer, Senior Vice President, EBG – Commodity & Currency Research, JM Financial Services Ltd.
He said investors would also track progress in peace negotiations between the US and Iran to end the war, as well as Russia-Ukraine peace talks.
On the Multi Commodity Exchange, gold futures for December delivery gained ₹3,682, or nearly 3 per cent, over the past week to close at ₹1.42 lakh per 10 grams. Silver futures rose ₹5,655, or 3.15 per cent, to settle at ₹1.84 lakh per kilogram.
In international markets, Comex gold futures for December delivery advanced $176, or 4.5 per cent, during the week to close at $4,074.9 per ounce. Silver gained $2.6, or 5.4 per cent, to settle at $51.94 per ounce.
Mer said bullion prices initially faced pressure from stronger-than-expected US nonfarm payroll data and improving consumer sentiment, which lifted the dollar and Treasury yields.
“However, prices ended with a strong weekly gain of more than 4 per cent in global markets, following a sharp rally mid-week after the US midterm election outcome that showed Democrats sweeping wins in both the Senate and the House over the Republicans,” he added.
Analysts said precious metals recovered during the week on bargain buying at lower levels and short-covering, although gains were capped by a correction in industrial metals, particularly copper.
The rally was also supported by safe-haven demand following a decline in AI, data centre and technology stocks in global markets, particularly in the US.
However, bullion futures came under selling pressure on Friday, with gold and silver closing around $4,074 and $52 per ounce, respectively, Mer said.
In the domestic market, prices could witness moderate fluctuations, with global cues, currency movements, inflation trends and festive demand around Diwali likely to influence trading.
