Analysts predict additional beneficial properties for gold and silver amid world commerce tensions and Middle East unrest. Safe-haven demand rises.
Market members will carefully watch key financial indicators, together with the US Producer Price Index (PPI), client confidence knowledge, weekly preliminary jobless claims and the People’s Bank of China’s lending price choice, for cues on the course of valuable metals, they added.
“Markets are awaiting the US producer price index (PPI), housing data, consumer confidence, regional Fed indicators, and the People’s Bank of China’s prime rate decision,” Choice Broking stated.
The brokerage agency stated escalating geopolitical dangers and Trump’s transfer to boost world tariffs after the US Supreme Court’s ruling have revived commerce uncertainties and strengthened safe-haven demand for bullion.
On the Multi Commodity Exchange, silver futures climbed Rs 8,584, or 3.5 per cent, whereas gold superior Rs 981, or practically 1 per cent, over the previous week.
“Gold prices traded in a narrow range during the week ended February 20, as MCX gold fluctuated between Rs 1.5-1.6 lakh per 10 grams. Softer US data and rising geopolitical risks pushed prices higher, with investors priced in the possibility of rate cuts by the Federal Reserve,” Prathamesh Mallya, DVP – Research, Non-Agri Commodities and Currencies, Angel One, stated.
Mallya stated renewed tensions within the Middle East, the Russia-Ukraine battle, and broader market volatility have pushed some buyers in the direction of gold as a hedge in opposition to uncertainty.
“Overall, the risk-off sentiment remained in precious metals in this week. We expect gold prices might move higher towards Rs 1.61 lakh per 10 grams,” he added.
Choice Broking famous that elevated post-Lunar New Year liquidity and agency industrial demand from photo voltaic and aluminium segments have additionally lent power to silver’s efficiency.
In the worldwide markets, Comex silver futures elevated USD 4.38, or 5.62 per cent to complete at USD 82.34 per ounce, whereas gold gained USD 34.6, or practically 1 per cent, to shut at USD 5,080.9, through the previous week.
“Gold ended the week on a strong note, breaking above USD 5,080 per ounce after a landmark Supreme Court of the United States ruling against global tariffs reignited volatility and safe-haven demand. The ruling, combined with mounting US-Iran tensions, has reintroduced a geopolitical risk premium that spurred silver’s rebound,” Choice Broking stated.
It added that whereas the greenback initially weakened to 97.8, it rebounded after President Trump introduced a ten per cent world tariff by way of govt order and thereafter introduced to extend the tariffs to fifteen per cent, maintaining buyers cautious and bullion supported.
“Additional support came from heightened tensions in the Middle East, including a significant US military deployment near Iran, which further lifted bullion’s appeal,” the brokerage added.
