New Delhi, October 26: Gold and silver prices are expected to remain under pressure in the current week as rising crude oil prices fuel inflation concerns and investors await the US Federal Reserve’s monetary policy decision.
Analysts said the Fed’s October 27-28 meeting could determine whether precious metals recover or extend their recent losses.
Gold And Silver Record Sharp Losses
Gold futures for December delivery on the Multi Commodity Exchange (MCX) declined Rs 5,768, or nearly 4 per cent, last week to settle around Rs 1.42 lakh per 10 grams.
Silver witnessed a sharper correction, falling Rs 15,087, or 7.14 per cent, to Rs 1.96 lakh per kg.
Higher US bond yields and a stronger dollar continued to weigh on precious metals.
Global Bullion Prices Decline
In international markets, Comex gold futures dropped USD 173.2, or 4.14 per cent, to USD 4,007.9 per ounce.
Gold briefly slipped to USD 3,989 before recovering above USD 4,000.
Silver futures declined nearly 6 per cent to USD 53.95 per ounce.
Jateen Trivedi, VP Research Analyst at LKP Securities, said gold could remain under pressure until investors receive clarity on the Federal Reserve’s interest rate outlook.
Crude Oil Surge Raises Inflation Concerns
Brent crude prices settled above USD 117 per barrel, raising fears of persistent inflation and tighter monetary policies.
Also read: Gold Jumps ₹1,200 To ₹1.56 Lakh, Silver Rockets ₹7,400 As Bargain Hunters Return
Pranav Mer, Senior Vice President at JM Financial Services, said rising energy costs were adding pressure on bullion prices.
Silver also faced weakness due to softer industrial demand and substitution efforts amid elevated prices.
US Fed Decision Remains Key Trigger
Investors will closely monitor the Federal Reserve’s policy announcement and its chair’s commentary this week.
A hawkish stance could strengthen the dollar and push bond yields higher, putting additional pressure on gold and silver.
However, a less hawkish outlook could support a recovery.
Other important triggers include European Central Bank and Bank of Japan policy decisions, US inflation data, GDP figures and geopolitical developments.
Analysts expect bullion markets to remain volatile as investors assess inflation risks and global interest rate expectations.
