Gold Prices Likely to Remain Steady Ahead of Key Economic Data

Gold prices are expected to stay in a corrective phase in the coming week as investors prepare for significant macroeconomic data from the United States and China. Analysts have noted that the focus will shift to inflation figures, remarks from Federal Reserve officials, and a crucial US Supreme Court hearing regarding trade tariffs.

According to Pranav Mer, Vice President of Commodity & Currency Research at JM Financial Services Ltd, the outlook for gold suggests a period of consolidation or further correction. “Gold prices are expected to see some consolidation or more correction as focus will be on the inflation numbers, US Supreme Court hearing on tariffs, speeches from Fed officials, and Chinese data,” he stated.

Despite concluding the week slightly lower, gold continues to trade within a narrow range. The strong dollar and subdued retail demand have capped prices, as buyers await further corrections. The uncertainty surrounding the US economic outlook may limit declines, particularly with a potential government shutdown delaying key data releases that could affect the Federal Reserve’s policy decisions.

Mer also pointed out that the outcome of the Supreme Court hearing on the legality of former President Trump’s trade tariffs could introduce more volatility to gold prices.

Current Market Trends and Predictions

On the Multi Commodity Exchange (MCX), gold futures for December delivery fell by Rs 165, or 0.14%, last week, closing at Rs 121,067 per 10 grams on Friday. “MCX gold futures are currently trading between Rs 117,000 and Rs 122,000 per 10 grams. Weak US labour data, safe-haven demand, expectations of rate cuts, and sustained central bank buying are the key drivers for gold in the near term,” noted Prathamesh Mallya, DVP – Research at Angel One.

Although gold has retreated approximately 10% from its record high above $4,390, it remains up over 50% year-to-date, marking its strongest annual performance since 1979. Mallya emphasized that continued volatility could push prices higher if current market fundamentals persist.

In international markets, Comex gold futures for December delivery rose by $13.30, or 0.33%, during the week to settle at $4,009.80 per ounce. Riya Singh, Research Analyst at Emkay Global Financial Services, mentioned that gold has stabilized near the $4,000 mark following sharp fluctuations driven by changing expectations surrounding US monetary policy.

Singh explained that optimism regarding an early December rate cut was tempered by mixed signals from Federal Reserve officials and the lack of official inflation data due to the government shutdown.

Silver Market Trends

Silver prices have mirrored gold’s trend, remaining largely range-bound throughout the week. On the MCX, silver futures for December delivery declined by Rs 559, or 0.38%, to close at Rs 147,728 per kilogram. On Comex, the metal finished at $48.14 per ounce.

“Silver steadied above $48 per ounce, supported by safe-haven demand amid shutdown concerns and shifting Federal Reserve expectations,” Singh noted. She highlighted that the US government’s recent decision to add silver to its list of critical minerals could influence global trade flows.

The inclusion brings the total to 60 critical minerals, potentially leading to new tariffs and trade restrictions under the administration’s Section 232 probe. “The US relies heavily on imported silver for industrial applications — from electronics to solar panels — and any tariff action could disrupt supply chains,” Singh warned.

Mer indicated that silver’s momentum remains consolidative to corrective below Rs 150,000–151,000 per kilogram, with support seen at Rs 139,300–138,000. “While policy ambiguity and profit-taking may limit sharp gains, resilient industrial demand, geopolitical risks, and a weaker dollar are expected to keep silver supported above $47.55 per ounce,” Singh concluded.

As markets await critical data and policy developments, traders are advised to remain cautious while monitoring inflation trends and Fed communications.