Gold, Silver Firm as US Tariff Verdict and Geopolitics Loom
Overview
Gold and silver prices are poised for stability next week, driven by escalating geopolitical tensions and uncertainty surrounding a US Supreme Court verdict on President Trump's tariffs. Investors are closely watching inflation data from major economies and trade figures from China, with commodity analysts suggesting any dips present buying opportunities amidst safe-haven demand.
Bullion Edges Higher on Geopolitical Fears
Gold and silver prices are expected to maintain their upward trajectory next week. Heightened geopolitical risks and anticipation of a US Supreme Court decision on President Donald Trump's trade tariffs are bolstering demand for safe-haven assets. Analysts suggest that any price dips should be viewed as opportunities to acquire the precious metals.
Economic Indicators in Focus
Market participants will scrutinize inflation data from key economies, including the United States, India, and Germany. Trade and investment figures from China, along with commentary from US Federal Reserve officials, will also be critical for short-term price direction. This broad economic monitoring is crucial for understanding the underlying support for bullion.
Price Action Reflects Strength
On the Multi Commodity Exchange (MCX), gold futures concluded the past week with a 2.25 percent gain, settling at ₹1,38,819 per 10 grams. In international markets, gold futures climbed approximately 4 percent to $4,500.90 per ounce. Silver futures on MCX showed robust performance, surging nearly 7 percent to close at ₹2,52,725 per kg, while international silver prices jumped almost 12 percent to $79.34 per ounce.
Geopolitical Undercurrents Bolster Demand
Elevated geopolitical tensions, including events in Venezuela, the Russia-Ukraine conflict, and unrest in Iran, are underpinning strong safe-haven demand for gold and silver. These global frictions, coupled with consistent inflows into gold and silver exchange-traded funds, are providing significant support. Intermittent strength in the US dollar has, however, occasionally capped gains, creating volatility.
Outlook for Next Week
Analysts anticipate continued volatility but with a firm underlying trend. Technical analysis suggests gold could test ₹1,41,000 per 10 grams, and silver might surge towards ₹2,80,000-3,00,000 per kilogram. The market's focus will remain intently fixed on macroeconomic data and geopolitical developments.
