On the Multi Commodity Exchange, silver plunged Rs 14,359, or 5.08 per cent, while gold slipped Rs 470, or 0.3 per cent.

Photograph: Heinz-Peter Bader/Reuters

Gold prices are expected to remain volatile next week as investors track geopolitical developments in the Middle East and key macroeconomic data releases that could shape the sentiment in the domestic market, analysts said.

“Focus will again be on the developments in the Middle-East and further escalation would be positive for gold prices, but a sign of de-escalation may trigger sharp selling,” Pranav Mer, Vice President, EBG – Commodity & Currency Research, JM Financial Services Ltd, said.

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Mer added that silver is also undergoing a consolidation phase but remains highly volatile.

Silver remains highly volatile

“Silver too is passing through a consolidation phase but trading with high volatility as gains are capped by consolidative moves in gold and industrial metals like Copper and Zinc,” he said.

During the past week, bullion futures witnessed sharp movements in the domestic market.

On the Multi Commodity Exchange, silver plunged Rs 14,359, or 5.08 per cent, while gold slipped Rs 470, or 0.3 per cent.

“Gold prices consolidated in a broad range last week, in a range of Rs 1.59 lakh-1.70 lakh per 10 grams,” Prathamesh Mallya, DVP – Research, Non-Agri Commodities and Currencies, Angel One, said.

He added that geopolitical tensions, Asian demand, strong central bank purchases, elevated US Treasury bond yields and a firm dollar remain the key factors influencing price dynamics in the bullion market.

Globally, silver futures on the Comex slumped $8.98, or nearly 10 per cent, while gold prices fell $89.2, or 1.7 per cent, during the past week.

How gold fared

Gold has closed in the negative territory on a weekly basis amid rising demand for alternative safe-haven assets such as the US dollar, Franc, and Bonds, though the downside remains capped by ongoing geopolitical escalation in the Middle East, Mer said.

Geopolitical tensions remained elevated after the Israeli military said it is moving to the “next phase” of its campaign against Iran.

Meanwhile, Defence Secretary Pete Hegseth said the amount of firepower in the region “is about to surge dramatically,” following Britain’s decision to allow the US armed forces to use its military installations.

Analysts noted that major global ETFs are witnessing outflows as traders, especially from the Middle East region, look to book profits or raise liquidity amid the escalating conflict.

At the same time, surging energy prices have reduced expectations of a near-term interest rate cut by the US Federal Reserve at its June meeting.

Investors will watch key releases, including China’s inflation and trade data, and inflation readings from the US, Germany, and India.

Later in the week, provisional GDP, Personal Consumption Expenditures (PCE) price index and US consumer sentiment will guide the global growth and monetary policy outlook, they added.