Gold and Silver Set for Range-Bound Trading with Positive Bias This Week
Gold and silver prices are likely to trade within a range while exhibiting a positive bias in the coming week, according to analysts. Investors are closely tracking geopolitical developments in West Asia and key global macroeconomic data for directional cues. Market participants will also focus on the Reserve Bank of India's monetary policy decision scheduled for mid-week, which could provide further insights into domestic economic conditions and influence precious metal trends.
Geopolitical Factors and Global Data in Focus
Pranav Mer, Vice President of EBG - Commodity & Currency Research at JM Financial Services Ltd., emphasized that the primary focus remains on developments in the Gulf region. He stated, "Going into the week ahead, focus continues to remain on developments in the Gulf region - any sign of further escalation or de-escalation may drive prices accordingly." Additionally, investors will monitor global indicators, including services PMI readings across major economies, along with US data on durable goods, GDP, the Personal Consumption Expenditures (PCE) index, and CPI inflation.
In the previous holiday-shortened week, gold futures for June delivery on the Multi Commodity Exchange rose by Rs 2,425, or 1.65%, while silver futures for May gained Rs 4,541, or 2%. This recovery followed three consecutive weeks of decline, supported by macroeconomic and geopolitical factors. Brokerage firm Choice Broking noted that a weakening rupee at record lows and a decline in Bitcoin, which shifted investor flows towards bullion, contributed to the uptick.
Global Market Performance and Underlying Trends
In global markets, gold futures for June delivery on Comex increased by USD 155.4, or 3.43%, settling at USD 4,679.7 per ounce. Silver for May delivery rose by USD 3.13, or 4.5%, closing at USD 72.92 per ounce. Mer highlighted that gold prices closed positively for the second straight week, ending with a weekly gain of nearly 4%, while silver also advanced, tracking higher gold and industrial metals.
Despite stronger-than-expected US macroeconomic data, which reinforced expectations of a resilient economy and accommodative monetary policy, prices held firm. Mer added that some liquidation occurred due to ETF selling and reduced central bank buying, followed by a corrective move after remarks by US President Donald Trump on Iran heightened geopolitical tensions.
Supply Dynamics and Future Outlook
Choice Broking pointed out that uncertainties persist as Iran rejected a US peace proposal and maintained control over the Strait of Hormuz, while strong physical demand continued to support prices. Silver imports into China during the first two months of 2026 reached an eight-year high of 206.76 metric tonnes, tightening global supply and adding upward pressure on prices.
Analysts expect the overall trend in precious metals to remain sideways to bullish in the near term. Investors will also monitor US unemployment data and jobless claims for signals on policy direction and bullion prices. The interplay of geopolitical risks, macroeconomic indicators, and supply factors is likely to keep gold and silver markets volatile yet inclined towards gains in the upcoming sessions.
