Gold price, silver rate suffer weekly losses. Check latest gold rate predictions

Gold price and Silver rate were down for the week even as both metals saw an uptick in their value on Friday. Spot gold rose 0.2 per cent to $4,176.92 per ounce but was down 0.4 per cent so far in the week. US gold futures for December delivery rose 0.7 per cent to $4,198.10 per ounce. This comes as a softer dollar lent support, while market participants focused on the US Federal Reserve's future policy trajectory. Spot silver rose 0.7 per cent to $57.86 per ounce, platinum gained 0.7 per cent to $1,636.98 and palladium was up 0.5 per cent to $1,132.09. However, all three metals headed for weekly losses.

Gold Rate Prediction

The US dollar headed for its first weekly fall in five weeks, making greenback-priced bullion more affordable for holders of other currencies. Federal Reserve Chair Kevin Warsh voiced optimism about US economic strength but gave no preview about whether he feels more interest-rate hikes will be needed, or when.


"Fed Chair Warsh offered nothing new on policy at his IMF speech, leaving market pricing for an October hold intact and creating room for a further gold rebound in the near-term," said Nikos Tzabouras, an independent financial markets analyst.

Traders largely expect the US central bank to hold rates steady this month, while pricing in a 91 per cent chance of a rate hike in December, according to the CME's FedWatch Tool.

Data on Thursday showed US producer prices increased by the most in 4-1/2 years last month, the latest indication of inflation broadening out beyond energy products. The data followed Wednesday's consumer price report, which showed prices accelerated in September.

Although gold is typically seen as an inflation hedge, higher interest rates tend to reduce the appeal of non-yielding metal.

"A retreat in yields and the US dollar would pave the way for gold to resume its rise above $5,000/oz in 2027," analysts at ANZ said in a note.

Gold and silver bounced back on safe-haven buying and short-covering, while a softer dollar index helped, slipping from its 18-month high, said Renisha Chainani, Chief Research Officer at Augmont.

On the outlook, Praveen Singh, Head of Commodities at Mirae Asset Sharekhan, said gold is expected to range trade with a slight bullish tilt as traders watch crude oil prices.

Akshat Siddhant, Lead Quant Analyst at investment platform Mudrex, said that silver remained above USD 57 an ounce in global trade, drawing support from safe-haven demand amid weaker equities and falling US bond yields.