Gold falls to Rs 1.36 lakh, silver down 5% on MCX this week; what’s the outlook?
Gold price outlook: Gold and silver could face a volatile trading week as investors weigh inflation figures from key economies, signals from the US Federal Reserve and the latest developments in West Asia, analysts said.Gold and silver both recorded sharp losses on the Multi Commodity Exchange (MCX) over the past week. December-delivery gold futures fell by Rs 5,847, or 4.10%, to close at Rs 1.36 lakh per 10 grams.Silver futures declined by Rs 8,791, or nearly 5%, during the week, ending at Rs 1.76 lakh per kg.Gold, silver price outlook for next weekMarket participants will watch inflation data from India, the US, the UK, the Eurozone and Japan.
The minutes of the Federal Open Market Committee meeting, remarks by Federal Reserve officials and US employment figures will also be closely monitored.China’s industrial production data will be another area of focus, as the numbers could influence industrial metals, particularly silver, analysts said.Developments in West Asia are also likely to shape the outlook. A further escalation in tensions between Washington and Tehran could drive crude oil prices higher, adding to inflationary pressures and fuelling expectations of tighter monetary policy."The near-term outlook remains cautious to bearish, with volatility expected to stay elevated.
On the domestic front, MCX prices will also remain influenced by rupee movements and international bullion trends," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities."Gold extended its corrective trend this week to close around Rs 1.36 lakh per 10 grams on the MCX, registering negative weekly returns of over 4 per cent amid a strong US dollar, elevated Treasury yields and persistent inflation concerns," Trivedi said.In overseas markets, December-delivery Comex gold futures dropped by $188.6, or almost 5%, over the past week, closing at $3,886.3 per ounce.
Silver prices also weakened, losing $2.82, or 5.43%, to end the week at $49.12 per ounce."Gold futures consolidated in a range on Friday before closing almost flat, but recorded a weekly loss of more than 4 per cent as the US dollar and global bond yields rebounded," Pranav Mer, Senior Vice President, EBG - Commodity & Currency Research at JM Financial Services Ltd told PTI.Mer said silver futures continued their downward correction, posting weekly losses of more than 5% and settling below $49 per ounce.The initial pressure on precious metals came from hawkish remarks by Federal Reserve officials.
Prices subsequently faced further headwinds after inflation figures from the US and other regions came in higher than expected, Mer added.The World Gold Council (WGC) reported that investors in gold exchange-traded funds (ETFs) had largely stayed on the sidelines so far in the current quarter, following record inflows in the third quarter of 2026. Central banks have continued to make net purchases of gold, while demand for coins and bars has eased.Rajeev Sharan, Head of Research at Brickwork Ratings, said gold had moved into a consolidation phase after its strong rally earlier this year.
The recent fall in bullion prices, triggered by a stronger US dollar, has pushed market expectations of a rate hike in December to nearly 90%.Sharan expects international gold prices to trade between $3,850 and $4,000 per ounce in the near term. In India, he said, demand linked to the wedding season and continued buying by central banks should help cushion further price declines."However, rate worries may weigh on sentiment in the short term, but steady demand continues to support gold's long-term appeal," he added.Money habits form by age 7.
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