Gold Prices Poised to Retest Record Highs
Gold prices are poised to remain firm and could edge closer to record highs next week as investors await key US data, Federal Reserve Chair Jerome Powell’s speech and the Reserve Bank of India’s policy decision, analysts said.
According to Pranav Mer, Vice President, EBG – Commodity & Currency Research, JM Financial Services Ltd, gold prices are likely to move out of the consolidation range as investors focus on the manufacturing and services PMI data from across regions, US jobs data, and consumer sentiments.
Key Factors Influencing Gold Prices
Several factors are expected to influence gold market trends in the coming week. These include Fed chair Jerome Powell’s speech on Monday, developments over the Russia-Ukraine peace talks, and the RBI policy meeting on Friday, all of which will be closely monitored by traders.
In the domestic markets, rupee’s weakness and local demand have been a significant contributor to gold price volatility in the Indian markets. Demand from festivals, weddings, and continued jewellery purchases continues to support precious metal prices in the Indian markets, according to Prathamesh Mallya, DVP – Research, Non – Agri Commodities and Currencies, Angel One.
Central Banks’ Gold Accumulation
Global central banks’ sustained gold accumulation is expected to keep the long-term outlook constructive. Central banks have been accumulating gold for the past few years, and the trend is likely to continue going into 2026, Mallya said.
Karthick Jonagadla, smallcase Manager and Founder of Quantace Research, said that for investors, gold investment is a clean way to express a view on the US real-rate path while staying within a familiar asset.
International Market Trends
In the international markets, Comex gold futures for December delivery rose by $138.8, or 3.4%, during the week, and finished at $4,218.3 per ounce on Friday.
According to Pranav Mer of JM Financial Services, gold prices rallied more than a percent after trading resumed on CME after an 11-hour outage. The bullions remained supported by a weaker US dollar, dovish commentary from a couple of Fed officials, and rising bets for an imminent 25 basis points rate cut by the US Federal Reserve.
Silver Prices Outperform Gold
Meanwhile, silver prices posted a spectacular week outperforming gold. On the MCX, the white metal futures skyrocketed by Rs 17,104, or 10.83%, over the past week.
Silver for March 2026 delivery breached the Rs 1.75 lakh per kilogram level for the first time on Friday. In overseas trade, Comex silver futures for December delivery jumped by $6.53, or 13.09%, during the week to close at $56.44 an ounce.
Outlook for Gold and Silver
As rate-cut hopes remain intact, the US dollar under pressure, and safe-haven demand steady amid geopolitical uncertainties, analysts said gold prices could attempt to retest its record highs if the upcoming data reinforces the easing outlook.
Silver prices have given a strong breakout above Rs 1,64,000 per kilogram level and rallied sharply. The momentum can push prices further up towards Rs 1,90,000-2,00,000 per kg levels in the short-term, according to Mer.