Gold and Silver Market: A Tug of War Amid Volatility

The prices of precious metals, including gold and silver, are expected to face further consolidation this week as volatility persists. Analysts point to key U.S. economic data and Federal Reserve policies as primary influences. Investors are closely monitoring inflation numbers and GDP readings to gauge market direction.

Domestically, silver futures on the Multi Commodity Exchange (MCX) have seen a decline while gold recorded modest gains in the past week. Prathamesh Mallya from Angel One noted that strong U.S. employment data had altered expectations for rate cuts, impacting gold prices despite its appeal as a safe haven.

In international markets, gold futures on Comex experienced gains, closing the week positively. Analysts highlight central bank buying and safe-haven flows amid global market sell-offs as supportive forces for bullion prices, though mixed demand from India and China weighs on sentiment.