Silver also witnessed a sharp rally, jumping nearly 14% on MCX to hit an all-time high of ₹2,92,960 per kilogram. Globally, Comex gold futures closed at USD 4,595.4 per ounce, after touching USD 4,650.50 earlier in the week. Silver climbed to USD 88.53 per ounce, following a record high of USD 93.75.
Global Economic Factors Driving Prices
Market analysts highlight that global economic data, including inflation numbers, GDP growth, PMI readings, and US jobless claims, will influence the next phase of precious metal movements. “The focus will also be on economic indicators from China, crucial for industrial metals, alongside US policy signals and geopolitical developments,” said Pranav Mer, Vice President at JM Financial Services.
Domestic gains were partly supported by a weaker rupee against the US dollar. However, profit-booking and long-liquidation moderated prices on Friday, following easing geopolitical tensions and stronger-than-expected US jobs data.
Investor Sentiment and Safe-Haven Demand
Geopolitical uncertainty, expectations of interest rate cuts by the US Fed, and central bank buying have sustained demand for gold and silver. Prathamesh Mallya, DVP at Angel One, expects gold to extend gains to ₹1,46,000 per 10 grams on MCX, while global prices could approach USD 4,750 per ounce.
Vijay Kuppa, CEO of InCred Money, emphasized that both metals remain structurally positive despite short-term volatility. “Central banks continue adding gold to reserves, while silver’s dual role as an industrial and precious metal supports long-term demand,” he said.
Outlook for Silver
Analysts caution that silver may face corrections after its steep rise. “Short-term pullbacks are normal and do not alter the broader trend. A significant corrective move could occur as prices near USD 100 per ounce,” noted Pranav Mer.
Investors are advised to monitor global economic updates, geopolitical developments, and US monetary policy announcements closely to gauge precious metals’ price trajectory.
