Gold rate prediction: Gold price, silver rate prediction: Volatile situation expected after Presidents day holiday? Details here
Precious metal prices are expected to witness further consolidation next week and volatility is expected to continue as investors monitor key US economic data including inflation figures, GDP readings and policy signals from the Federal Reserve, analysts said. They added that investors will closely monitor US employment data, as well as Federal Open Market Committee (FOMC) meeting minutes and speeches by Fed officials, for clues about the timing and pace of potential interest rate cuts.
JM Financial Services Ltd. Pranav Mer, Vice President of Commodity and Currency Research, EBG, said gold and silver prices may continue to see more consolidative movements, but volatility will prevail with the focus on upcoming data on US GDP and Personal Consumption Expenditure (PCE) inflation numbers and Federal Reserve official comments.
“However, the safe-haven appeal of the yellow metal remains intact due to geopolitical tensions and strong buying ahead of the Lunar New Year. There is a tug of war between bears and bulls this week and volatility will continue in the coming week,” Mallya added.
“Gold prices fluctuated between gains and losses for most of the session but managed to close the week positive and above USD 5,000 per ounce in the overseas market. Due to lack of clarity among traders, bullions are going through a consolidation phase where they remain divided on the direction of the price and are looking for new fundamental triggers,” said Pranav Mer.
Analysts said central bank purchases, safe-haven flows and a weakening dollar index were supporting bullion prices amid sharp selloffs in technology and artificial intelligence stocks in global markets.
Pranav Mer stated that silver prices also saw significant fluctuations throughout the week, with two-way price movements and periodic profit taking at higher levels.
“The white metal remained under pressure due to corrections and profit taking in industrial metals after failing to break key technical resistance. It also faced pressure from the technology-led global equity sell-off, which dampened risk appetite across asset classes,” he added.
