Gold price predictions: Gold price, silver rate predictions: Big corrections expected this week? Analysts have a warning

Analysts said gold prices are likely to remain strong next week as investors await key economic data, including US inflation figures, for new signs on the interest rate outlook, while silver may remain volatile due to changing risk sentiment and speculative activity. In the international market, gold gained US$234.7, or about 5 percent, on the Comex last week, rising from US$4,400 to US$5,000 per ounce. However, silver futures remained under pressure and lost $1.63, or 2.08 percent.

Investors will look for clues from US GDP, PMI, nonfarm payrolls and inflation data. In addition, inflation data from China, Germany and India will be watched carefully. Officials added that the speeches of US Federal Reserve officials will also be closely monitored for indicators on the timing of potential interest rate cuts and their impact on bullion prices.

“Gold consolidation and recovery suggest that the trend remains positive. However, when it comes to silver, we remain cautious about volatility and further corrections,” said Pranav Mer, EBG Vice President of Commodity and Currency Research at JM Financial Services.

Last week, gold futures rose Rs 7,698 or 5.2 per cent on the Multi Commodity Exchange, while silver fell Rs 15,760 or almost 6 per cent. The commodity market remained open on Sunday due to Finance Minister Nirmala Sitharaman’s presentation of the Union Budget.

“Gold and silver have had an extremely volatile week as a sharp recovery in the dollar, changing Fed expectations and aggressive position easing triggered one of the steepest corrections in decades,” said Manav Modi, Commodity Analyst, Motilal Oswal Financial Services Ltd (MOFSL).

He said the easing of tensions between Washington and Tehran, progress in President Donald Trump’s tariff negotiations and the reduced risk of a US government shutdown have reduced safe haven premiums, while the nomination of Kevin Warsh as the next Fed Chairman has also encouraged investors to reduce their expectations for aggressive interest rate cuts.
“The easing was severe: Gold recorded its sharpest decline in nearly four decades, while silver weakened, buoyed by heavy call option positioning, margin calls and speculative liquidation,” Modi said. Modi explained that despite the steep sell-off, signs of stabilization are emerging as forced liquidation has eased and value buying in both metals has returned.

“There hasn’t been much change in fundamentals as geopolitical uncertainty still remains. Central banks and ETF investors continue to add gold to their holdings, while crypto companies have also increased purchases to create and trade gold tokens backed by physical assets,” Mer said.

Silver Rate Forecast

“Silver is impacting volatility in silver as prices are going through a phase of high volatility following a parabolic rally that ended with a sudden drop from an all-time high of $121 on January 30 to a recent low of $64,” said Pranav Mer of JM Financial Services.

According to grocer Modi, physical demand from China ahead of the Lunar New Year has remained resilient and could help accommodate further sales.

“Broader fundamentals still support bullion through 2026 due to central bank buying, fiscal concerns and geopolitical risks, but short-term volatility is likely to remain high,” he said.

Analysts said that macroeconomic data and the statements of Fed officials are ready to shape next week’s agenda, and traders expect volatility to continue, but they see short-term buying opportunities on declines, especially in gold.