Several factors led to the sudden decline in prices of precious metals. (AI image)
Analysts said precious metal prices are expected to remain volatile and see further strength in the coming week as investors keep an eye on key US economic indicators including inflation data, GDP readings and signals from the Federal Reserve.According to news agency PTI, traders are also likely to keep an eye on US labor market data, Federal Open Market Committee (FOMC) meeting minutes and speeches by Fed officials for clarity on the timing and pace of a potential rate cut.
Volatility to remain on US GDP, PCE data
Pranav Mer, Vice President, EBG – Commodity and Currency Research at JM Financial Services Ltd, said gold and silver prices may continue to consolidate, although volatility is expected to remain.“Gold and silver prices may see further strength but will remain volatile with focus on upcoming US data on GDP and personal consumption expenditure (PCE) inflation numbers and comments from Federal Reserve official,” he said, according to PTI.On the domestic front, silver futures on the Multi Commodity Exchange (MCX) fell by Rs 5,532 or 2.2 per cent last week, while gold rose by Rs 444 or 0.3 per cent.
Gold fell sharply in February
Prathamesh Mallya, DVP of research, non-agri commodities and currencies at Angel One, said gold prices have improved in February.“Gold prices have declined in February 2026, with prices falling from a high of Rs 1,80,000 per 10 grams to around Rs 1,53,800 per 10 grams on February 13,” he said, according to PTI.He attributed the weakness to stronger-than-expected US employment data, which has dampened expectations of near-term rate cuts and weighed on gold prices last week.“However, the safe-haven appeal of the yellow metal remains intact due to geopolitical tensions and strong buying ahead of the Lunar New Year. There is a tug-of-war between bears and bulls this week and volatility will continue in the coming week,” Mallya said.
International Trends and Market Drivers
In the international market, Comex gold futures rose $84 or 1.7 per cent during the week, while silver closed marginally higher at $77.27 an ounce.Mer said gold prices fluctuated between gains and losses during most of the trading sessions, but managed to end the week with gains.“Gold prices fluctuated between gains and losses for most part of the trading session, but in the overseas market it managed to close the week positive and above $5,000 an ounce.“Bullions are undergoing consolidation amid lack of clarity among traders as they remain divided over price direction and look for new fundamental triggers,” he said.Analysts said central bank buying, safe-haven demand and a soft dollar index amid sharp selling in global technology and AI stocks provided support to bullion prices.However, mixed physical demand from India and China, profit-booking by ETF investors and strong US macroeconomic data limited the upside.Silver prices also experienced two-way fluctuations during the week, Mer said.“The white metal was pressured by a correction in industrials and profit-booking after failing to break key technical resistance. It also faced pressure from tech-led global equity selloff, which reduced risk appetite across asset classes,” he said.Analysts said both gold and silver are likely to remain range-bound in the near term as investors await clear signals on the Federal Reserve’s monetary policy trajectory and broader global economic trends.