Silver And Gold Brace For Volatile Week Amid US Inflation Data And Fed Signals

Gold and silver markets are bracing for turbulence as traders closely monitor US economic indicators. Analysts suggest that upcoming inflation numbers, GDP data, and labour market reports will be critical in shaping expectations around Federal Reserve policy. The release of FOMC meeting minutes and speeches from Fed officials are also expected to provide clarity on the pace of potential rate cuts.  

On the domestic front, silver futures on the Multi Commodity Exchange (MCX) fell by 2.2% last week, while gold gained 0.3%. Experts believe this divergence reflects investor caution, with gold seen as a safer hedge against inflationary pressures. Silver, more tied to industrial demand, remains vulnerable to global growth concerns.  

Market watchers anticipate consolidation in both metals, with volatility likely to persist until clearer signals emerge from US policymakers. The outlook suggests traders should prepare for sharp price swings, particularly if inflation data surprises or Fed officials adopt a more hawkish tone.  

Key Highlights  

• Gold rose 0.3% last week, silver declined 2.2% on MCX  
• Volatility expected to persist in precious metals  
• Focus on US inflation, GDP, and labour market data  
• Fed minutes and speeches to guide rate cut expectations  
• Analysts predict consolidation with range-bound movement  

Sources: The Hindu BusinessLine, PTI, Rediff Money, Business Today