Gold, silver prices prediction: Gold rate, silver to fall this week? Check latest forecast

Gold prices are likely to stay volatile but largely range-bound with a bias towards consolidation as investors will keenly follow the US Federal Reserve's (Fed) policy outcome and remarks from Fed Chair Jerome Powell for cues on the interest rate decision. US President Donald Trump and his Chinese counterpart Xi Jinping's meeting in South Korea, and the European Central Bank's policy review on Thursday are also expected to steer the trajectory of gold rate. Comex gold futures dropped USD 75.5, or 1.8 per cent, over the week. The yellow metal hit an all-time high of USD 4,398 per ounce on Monday but tumbled by USD 266.4, or 6.11 per cent, on Tuesday, marking its biggest one-day fall in over a decade.

Gold witnessed its sharpest one-day decline in over a decade this week, retreating more than 6 per cent as investors booked profits following a prolonged record-setting rally. The sell-off was largely technical, with prices failing to hold above the USD 4,300 an ounce level, Riya Singh -- Research Analyst, Commodities and Currency, Emkay Global Financial Services, said.

She added that renewed optimism about US-China trade discussions and a firmer dollar also capped safe haven flows to gold.


"The sharp reversal is due to months of speculative positioning tied to expectations of deeper rate cuts by the Fed and concerns about fiscal weakness. Despite the steep correction, the broader outlook for gold remains bullish," Singh said.

She explained that macro drivers, such as persistent US deficits, central bank diversification away from the dollar, and elevated geopolitical risk, continue to support the long-term case for bullion.

Silver Price Prediction

In the international markets, silver futures shed 3.02 per cent in the past week. It had hit a record of USD 53.76 per ounce on October 17. The white metal suffered losses by over 8 per cent, marking its steepest one-day fall since 2021, to touch USD 47.12 per ounce on October 21.

"Silver mirrored gold's weakness but suffered sharper correction of nearly 9 per cent as profit-taking intensified after its meteoric rise earlier this month. The decline was exacerbated by a temporary easing in supply concerns and stronger US bond yields," Singh noted.

Despite the pullback, she said, "Silver's fundamental outlook remains robust, supported by rising industrial demand from the solar photovoltaic and electric vehicle sectors."

Meanwhile, Riya Singh expects silver to advance towards USD 60 an ounce in the next 8-12 months, if investment flows and industrial demand remain resilient.

FAQs

Q1. How has silver price performed?

A1. Silver futures shed 3.02 per cent in the past week. It had hit a record of USD 53.76 per ounce on October 17. The white metal suffered losses by over 8 per cent, marking its steepest one-day fall since 2021, to touch USD 47.12 per ounce on October 21.

Q2. How has gold rate performed?

A2. Comex gold futures dropped USD 75.5, or 1.8 per cent, over the week. The yellow metal hit an all-time high of USD 4,398 per ounce on Monday but tumbled by USD 266.4, or 6.11 per cent, on Tuesday, marking its biggest one-day fall in over a decade.