Gold and silver prices face a bumpy week as investors track global inflation data, Federal Reserve signals, and West Asia tensions. "The near-term outlook remains cautious to bearish, with volatility expected to stay elevated," said Jateen Trivedi. Gold futures fell to ₹1.36 lakh per 10 grams on the MCX recently.
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.
"Gold futures consolidated in a range on Friday before closing almost flat, but recorded a weekly loss of more than 4% as the US dollar and global bond yields rebounded," said Pranav Mer, Senior Vice President, EBG - Commodity & Currency Research at JM Financial Services Ltd.
Silver futures also extended their corrective trend, ending the week with losses of over 5% and settling below $49 per ounce, he said.
The precious metals were initially weighed by hawkish commentary from Fed officials and subsequently by higher-than-expected inflation numbers from the US and other regions, Mer added.
According to the World Gold Council (WGC), exchange-traded fund investors have remained on the sidelines so far this quarter, after record additions in the third quarter of 2026. Central banks have continued to be net buyers, although demand for coins and bars has declined.
Rajeev Sharan, Head of Research at Brickwork Ratings, said gold prices had entered a consolidation phase after a strong rally earlier this year. The recent decline in bullion prices due to a stronger US dollar has raised market expectations of a December rate hike to nearly 90%.
Sharan expects international gold prices to move in a range of $3,850 and $4,000 per ounce in the near term. On the domestic front, he pointed out that wedding demand in India and steady central bank buying should help limit the downside.
"However, rate worries may weigh on sentiment in the short term, but steady demand continues to support gold's long-term appeal," he added.