Editor’s Note
This article discusses market speculation that gold and silver prices may rally this week, driven by global uncertainty and investor sentiment.
Speculation has begun that gold and silver prices may see another rally this week. Last week was quite good for both precious metals, but experts believe that increasing global uncertainty could lead investors to once again put money into gold and silver. This will also impact the prices of both metals.
Analysts say that following former US President Donald Trump’s decision to increase global tariffs and rising geopolitical tensions in West Asia, amid renewed trade tensions, investors have sought safety in safe-haven assets, which is expected to boost silver and gold next week. Market participants will focus on some key economic data to gauge the trend of 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 reported that the market is awaiting the US Producer Price Index, housing data, consumer confidence, regional Federal Reserve indicators, and China’s central bank’s key interest rate decision. Trump’s global import tariff hike after the US Supreme Court’s decision and rising geopolitical risks have created uncertainty in global trade, prompting investors to move back towards safe investments (gold and silver).
On the Multi Commodity Exchange (MCX), silver prices rose by 8,584 rupees or 3.5 percent last week, while gold prices increased by about 981 rupees or 1 percent. Prathamesh Mallya of Angel One’s research department said that gold prices remained in a limited range until the week ending February 20. On MCX, gold prices per 10 grams fluctuated between 1.5 lakh and 1.6 lakh rupees. Weak US economic data and rising geopolitical risks pushed up gold prices. Investors also factored in the possibility of an interest rate cut by the Federal Reserve.
Whether it’s the global market or the domestic spot market, both recently saw gold and silver prices touch record levels. However, as volatility subsided slightly, prices for both began to show a decline, and today they are significantly below their record highs. Silver, in particular, had once crossed the 4 lakh mark but is currently hovering around 2.60 lakh.