Gold and Silver Prices: What to Expect
The prices of gold and silver are expected to remain volatile in the coming weeks, influenced by various factors such as US macro data, the Fed Chair’s speech, and global trade negotiations. In this article, we will explore the factors affecting gold and silver prices and what analysts have to say about their future trajectory.
Factors Affecting Gold Prices
Gold prices are likely to remain range-bound in the coming week as investors await clarity on global trade negotiations, upcoming US macroeconomic data, and signals from the Federal Reserve. Traders will closely watch Fed Chair Jerome Powell’s speech and global PMI data from major economies, including the US, UK, and Eurozone. The European Central Bank’s interest rate decision will also be closely tracked for cues on the bullion price trajectory.
Analysts’ Views
According to Pranav Mer, Vice President of EBG – Commodity & Currency Research at JM Financial Services, the focus in the week ahead will remain on the trade negotiation outcome, Fed official speeches, US macro data, including housing market, weekly initial claims, and durable goods orders. "Gold prices are seen consolidating in a range over the past couple of weeks amid a lack of fresh triggers and recovery in the US Dollar in the given period," Mer said. He added that downside in bullion looks limited as focus remains on the trade negotiations between the US and its trading partners, such as India and China.
Silver Prices: A Record High
Silver futures for September delivery hit a record high of Rs 1,15,136 per kilogram on the Multi Commodity Exchange last week. Analysts believe that silver is maturing from the ‘poor man’s gold’ to a strategic metal for smart investors. With supply deficits in the world deepening and demand from EVs, solar, and electronics increasing, fundamentals are in place for a major rally. The gold-to-silver ratio of around 90X indicates space for dramatic catch-up. A weakening dollar, persistent inflation, and surging ETF flows are supporting silver’s attractiveness.
Future Outlook
Jateen Trivedi, Analyst at LKP Securities, said, "US Dollar’s strength last week kept gains in gold limited, rupee weakness is likely to cushion downside pressure in the domestic markets. Overall, gold is likely to remain volatile in the near term." NS Ramaswamy, Head of Commodity & CRM at Ventura, believes that if the proper catalysts, such as weaker US dollar, geopolitical risks, robust investor demand, and continued central bank purchases materialize, gold could gain another 4-8 per cent in the second half after a strong 26 per cent rise in the first half of 2025.
Conclusion
In conclusion, the prices of gold and silver are expected to remain volatile in the coming weeks, influenced by various factors such as US macro data, the Fed Chair’s speech, and global trade negotiations. While analysts believe that gold prices are likely to remain range-bound, silver prices are expected to rally due to supply deficits and increasing demand from various industries. As the global economic landscape continues to evolve, it will be interesting to see how gold and silver prices react to the changing circumstances.
