Gold, silver set to stay firm next week as traders brace for US tariff verdict: Analysts

On the Multi Commodity Exchange (MCX), gold futures climbed by Rs 3,058, or 2.25%, over the past week and settled at Rs 1,38,819 per 10 grams on Friday.

New Delhi: Gold and silver prices are expected to sustain positive momentum next week amid heightened geopolitical tensions and the uncertainty surrounding the US Supreme Court's impending decision on President Donald Trump's tariff policy, analysts said.

The release of inflation data from major economies, including the US, India, and Germany, along with trade and investment numbers from China and commentary from some Federal Reserve officials, will also be closely watched by the traders, they added.

"The bullions are expected to continue their positive momentum and corrective moves should be a buying opportunity, as focus again will remain on the US Supreme court hearing in the Trump's trade tariffs case and the geopolitical issues surrounding US President Donald Trump's actions & comments," Pranav Mer, Vice President, EBG - Commodity & Currency Research, JM Financial Services Ltd, said.

On the Multi Commodity Exchange (MCX), gold futures climbed by Rs 3,058, or 2.25 per cent, over the past week and settled at Rs 1,38,819 per 10 grams on Friday.

Gold prices on the MCX have been volatile this week; however, the trend remains firm as prices closed positively at the end of the week, and the precious yellow metal ended at around Rs 1,38,800 per 10 grams level, Prathamesh Mallya, DVP - Research, Non-Agri Commodities and Currencies, Angel One, said.

Dollar movement, Federal Reserve's next moves, inflation and jobs data are going to be the movers for the bullion prices in the short-term, he added.

From a technical perspective, Mallya expects gold to move higher towards Rs 1,41,000 per 10 grams next week.

In the international market, gold futures jumped by USD 171.3, or 4 per cent, over the week to finish at USD 4,500.90 per ounce on Friday.

"Gold futures continued their positive momentum and closed the week higher by more than 2 per cent, with prices in the overseas market closing near USD 4,500 per ounce," Pranav Mer of JM Financial Services said.

Meanwhile, silver futures on the MCX also witnessed significant upside last week, with the white metal ending near record levels. The metal surged Rs 16,409, or 6.94 per cent. It had zoomed to a record high of Rs 2,59,692 per kg before closing at Rs 2,52,725 per kg on Friday.

The white metal, over the past week, increased by USD 8.32, or nearly 12 per cent, before closing at USD 79.34 per ounce in the overseas trade.

Mer said bullion prices were supported by safe-haven demand amid heightened geopolitical tensions and mixed economic data. However, gains have been tempered at times by intermittent strength in the US dollar.

He added that exchange-traded funds (ETFs) continued to see inflows into gold and silver as investors seek portfolio protection.

On the geopolitical front, Mer pointed to rising tensions following the capture of Venezuela's President and control over the country's oil flows, escalation in the Russia-Ukraine conflict, unrest in Iran and broader regional frictions, all of which have supported safe-haven buying in bullion markets.

Looking ahead, Mer added that silver's bullish structure could see prices testing the Rs 2,80,000-3,00,000 per kilogram.

With key inflation data this week and the outcome of the Supreme Court tariff hearing likely to stir policy risk sentiment, bullion markets are likely to remain closely aligned to macro and geopolitical developments in the short term.