Gold price prediction: Gold rate to undergo volatile mode, claim experts, cite a few factors that will impact bullion movement

Gold price and silver rate are projected to undergo volatile mode due to several factors. Bullion investors are closely monitoring geopolitical developments such as US-Iran conflict, crude oil price movements. The focus will be on inflation prints from China, the US, Germany, Japan and India. Investors will also closely track speeches by Federal Reserve officials and US employment data.

In international markets, Comex gold futures for December delivery advanced USD 176, or 4.5 per cent, during the week to close at USD 4,074.9 per ounce. Silver gained USD 2.6, or 5.4 per cent, to settle at USD 51.94 per ounce, PTI reported.

Analysts said precious metals recovered during the week on bargain buying at lower levels and short-covering, although gains were capped by a correction in industrial metals, particularly copper. The rally was also supported by safe-haven demand following a decline in AI, data centre and technology stocks in global markets, particularly in the US.


International markets witnessed a stronger recovery. December gold futures on COMEX advanced $176, or 4.5 per cent, over the week to close at $4,074.90 per ounce. Silver futures climbed $2.60, gaining 5.4 per cent to settle at $51.94 per ounce.

Market experts attributed the initial weakness in bullion prices to stronger-than-expected US nonfarm payroll data and improving consumer sentiment.

These developments strengthened the US dollar and pushed Treasury yields higher, putting pressure on precious metals.

However, gold and silver recovered sharply during the middle of the week as investors returned to lower price levels through bargain buying and short-covering.

Gold Rate Prediction

Geopolitical developments in the Middle East are expected to remain a major driver of precious metal prices. US President Donald Trump has confirmed further military strikes against Iran while indicating that significant progress has been made in negotiations with Tehran.

This has created uncertainty among investors over whether tensions will escalate further or diplomatic efforts will lead to a possible resolution.

Apart from the US-Iran situation, developments in Russia-Ukraine peace negotiations will also remain on investors' radar.

According to market analysts, the direction of these geopolitical developments could significantly influence demand for safe-haven assets such as gold and silver.