Editor’s Note
This article examines the factors driving precious metal prices this week, including renewed trade tensions and geopolitical risks. Key economic data from the U.S. will be crucial for gauging the near-term direction for gold and silver.
Experts say that amid renewed trade tensions following US President Donald Trump’s decision to increase global tariffs and rising geopolitical tensions in West Asia, investors have sought safety in safe-haven assets, which is expected to drive up silver and gold prices this week. Market participants will focus on some key economic data to gauge the trend in precious metal prices. These include the US Producer Price Index, consumer confidence, weekly unemployment claims, and the interest rate decision by China’s central bank.
Choice Broking said that Trump’s move to increase global import tariffs following the US Supreme Court decision and rising geopolitical risks have created uncertainty in global trade, prompting investors to move towards safe investments like gold and silver. On the Multi Commodity Exchange (MCX), silver prices rose by 8584 rupees or 3.5 percent last week, while gold prices increased by about 981 rupees or one percent.
This was stated by Prathamesh Mallya, Research Department, Angel One.
Mallya said that the escalating tension in West Asia, the Russia-Ukraine war, and volatility in the broader market have prompted some investors to invest in gold to hedge against uncertainty.