Gold, Silver Prices Face Fresh Volatility Next Week, US-Iran Conflict & Global Inflation Data To Set Market Direction

New Delhi: Gold and silver prices could witness fresh volatility next week as investors monitor escalating US-Iran tensions, global inflation figures and crude oil movements. Analysts expect bullion markets to remain cautious despite strong gains recorded during the previous week.

Inflation In Focus

Inflation data from the US, China, India, Germany and Japan will play a crucial role in determining the direction of precious metals.

Investors will also watch US employment figures and comments from Federal Reserve officials for signals about future interest rate decisions.

Pranav Mer, Senior Vice President, Commodity and Currency Research at JM Financial Services, said gold and silver momentum remains weak amid uncertainty over inflation and monetary policy.

Geopolitical Pressure

Renewed tensions between Washington and Tehran could influence safe-haven demand after US President Donald Trump confirmed fresh military strikes on Iran.

Investors will closely monitor peace negotiations involving the US and Iran, alongside developments in Russia-Ukraine talks.

Any sharp movement in crude oil prices could also affect inflation expectations and bullion sentiment.

Weekly Price Rally

Despite market uncertainty, precious metals delivered strong weekly gains.

On the Multi Commodity Exchange (MCX), December gold futures jumped Rs 3,682, nearly 3 per cent, to ₹1.42 lakh per 10 grams.

Silver futures climbed ₹5,655, or 3.15 per cent, to ₹1.84 lakh per kilogram.

Internationally, Comex gold surged 4.5 per cent to $4,074.9 per ounce, while silver advanced 5.4 per cent to $51.94 per ounce.

What Lies Ahead?

Analysts attributed the recovery to bargain buying, short-covering and renewed safe-haven demand amid weakness in global technology stocks.

However, stronger US economic indicators, rising Treasury yields and dollar movements could limit further gains.

Chinese economic data will remain important for industrial metals, particularly copper.

Domestic trading will also be affected by the Diwali-Balipratipada holiday, with commodity markets closed during Tuesday's morning session.

Overall, inflation trends, geopolitical developments and festive demand will determine whether bullion extends its recovery or faces renewed selling pressure.

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