Gold, silver prices may stay range-bound with positive bias next week (representative image)
Gold and silver prices are likely to remain range-bound with a mildly positive bias next week, as weakness in the rupee supports domestic bullion prices amid global fluctuations, analysts said.Investors will also track inflation data from India, China and the US for cues on the outlook for precious metals.Trade data from Beijing and speeches by Federal Reserve officials will be closely watched for indications of whether the US central bank will deliver another rate hike in October or defer it to December, analysts said, as cited by news agency PTI."The outlook remains range-bound with a mildly positive undertone, as rupee weakness provides a cushion against global price fluctuations," Jateen Trivedi, VP research analyst - commodity and currency at LKP Securities, said.
Gold gains nearly 1% on MCX; silver ends lower
On the Multi Commodity Exchange (MCX), gold futures for December delivery rose by Rs 1,109, or nearly 1 per cent, last week to settle at Rs 1.51 lakh per 10 grams. Silver futures, however, ended the week marginally lower by Rs 122 at Rs 2.25 lakh per kilogram.Trivedi said gold's recovery on the MCX was supported by a softer US dollar, easing bond yields and improved geopolitical sentiment. A fall in crude oil prices on Friday also eased immediate inflation concerns, while the rupee's weakness provided additional support to domestic bullion.
"A weaker rupee increases the landed cost of imported bullion, helping MCX gold remain supported even when international prices face pressure. This currency impact could continue to cushion domestic prices against any moderate correction in Comex gold," he added.In overseas markets, December gold futures on Comex rose by $54, or 1.3 per cent, last week to close at $4,216.3 per ounce.Silver futures also gained more than 1 per cent to settle at $61.05 per ounce.
Bargain buying supports international
Gold futures recorded weekly gains of more than 1 per cent, supported by bargain buying at lower levels, Pranav Mer, senior vice president, EBG - commodity and currency research at JM Financial Services Ltd, said."Gold futures ended with a weekly gain of more than 1 per cent, on bargain buying at lower levels recovering from around $4,066 to above $4,200 per ounce," Mer said.He added that most of the gains came in the final two trading sessions of the week, as the dollar consolidated around the 102 level and US Treasury yields pared some of their recent gains.Silver also recovered over the last two sessions, drawing support from gold and positive momentum in industrial metals such as copper and zinc.However, the upside was limited by concerns that elevated prices could weaken demand as buyers turn to alternatives. Expectations of a market supply surplus in 2027 also weighed on the outlook for silver, Mer said.
Inflation data, Fed signals and in focus
Geopolitical uncertainty remains another factor influencing bullion prices.
The US-Iran conflict remains unresolved, with tensions escalating after US President Donald Trump said Washington was considering joining Saudi strikes against Iran-backed Houthi rebels in neighbouring Yemen following an attack on Riyadh's international airport.Alongside geopolitical developments, currency movements, expectations about US interest rates and investment demand are likely to remain key factors for gold and silver in the coming week, analysts said.Investors will assess inflation readings from India, China and the US, along with Chinese trade data and comments from Federal Reserve officials, for further indications about the interest rate outlook and its potential implications for precious metals.