Gold Price: Correction Coming in Gold Prices? Know Experts’ Opinion Before US Inflation Data and Trade Tariff Uncertainty

Gold Price: Gold prices are expected to remain in a corrective phase in the coming week ahead of the crucial US inflation data, continuing uncertainties over trade tariffs, and key economic numbers from China, analysts said. They added that traders will also closely watch comments from US Federal Reserve officials for clarity on the monetary policy outlook, which is likely to steer the near-term direction for bullion prices.

“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,” said Pranav Mer, Vice President, EBG – Commodity & Currency Research at JM Financial Services Ltd.

Key Influencing Factors

Pranav Mer noted that although gold prices ended the week slightly lower, the metal is largely stuck in a range. The upside is capped by a stronger dollar and sluggish physical demand as retail buyers stayed on the sidelines, anticipating a further price correction.

However, he also pointed out that the downside was limited by uncertainty over the US economic outlook. The ongoing federal government shutdown is delaying key macroeconomic data releases, which could make the task difficult for Fed officials when they meet next month. “Traders were on the sidelines as focus also remained on the US Supreme Court’s decision on the legality of Trump’s trade tariffs – the outcome is expected to increase volatility in the financial markets and more in gold,” Mer added.

Market Performance and Future Projections

On the Multi Commodity Exchange (MCX), gold futures for December delivery slipped by Rs 165, or 0.14%, during the past week, to settle at Rs 1,21,067 per 10 grams on Friday. “MCX gold futures are trading in the range of Rs 1,17,000-1,22,000 per 10 grams in the same time frame. A weak US labour market report, safe-haven demand, hopes of potential interest rate cuts in the US and central bank buying are factors driving gold prices in the near term,” said Prathamesh Mallya, DVP – Research, Non-Agri Commodities and Currencies, Angel One.

In the international market, Comex gold futures for December delivery gained $13.3, or 0.33%, during the past week, settling at $4,009.8 per ounce on Friday. According to Riya Singh, Research Analyst at Emkay Global Financial Services, “Gold hovered just near $4,000 an ounce this week, stabilising after sharp swings driven by shifting expectations over US monetary policy and labour market data.”

Silver Market Trends

Mirroring the trend in gold and industrial metals, silver prices also remained range-bound during the week. On the MCX, the white metal futures for December delivery declined by Rs 559, or 0.38%, to Rs 1,47,728 per kilogram on Friday. Comex silver futures edged lower last week and finished at $48.14 an ounce.

“Silver steadied above the $48 per ounce mark, supported by safe-haven demand amid the US government shutdown concerns and shifting expectations over the Federal Reserve’s policy path,” Singh said. In a significant policy shift, Washington added silver, along with copper and uranium, to its official list of critical minerals. This inclusion could lead to new tariffs and trade restrictions. “The US relies heavily on imported silver for industrial uses spanning electronics, solar panels, and medical devices. Any tariff action could disrupt global supply chains and add to price volatility,” Singh added.

Disclaimer: This article is for informational purposes only. Please consult with a qualified financial advisor before making any investment decisions.