Gold and Silver: Analysts Predict Limited Recovery Next Week

Gold and Silver Prices Outlook: Precious Metals Seen Stabilizing After Sharp Weekly Decline​

New Delhi, March 22: Precious metal prices are expected to stabilize in the coming week with a mild upward bias following a steep correction, although strong headwinds from elevated interest rates and a firm US dollar may limit any significant upside, analysts said.

Market Focus Shifts to Global Economic Data​

Investors are set to track key macroeconomic indicators, including provisional manufacturing and services PMI data from the United States, the United Kingdom, and Japan. Additional cues will come from consumer sentiment figures and weekly unemployment claims.

Oil price movements will also remain a critical factor influencing sentiment in the commodities market.

Gold and Silver Witness Sharp Weekly Losses​

Precious metals recorded significant declines in the domestic market last week.

• Silver prices on the Multi Commodity Exchange dropped by Rs 32,663 or 12.59 percent to settle at Rs 2.26 lakh per kilogram
• Gold prices fell by Rs 13,974 or 8.82 percent to close at Rs 1.44 lakh per 10 grams

According to Pranav Mer, Vice President, Commodity and Currency Research at JM Financial Services, gold prices continued their downward trajectory throughout the week, slipping below Rs 1.45 lakh per 10 grams and marking a decline of around 9 to 9.5 percent.

Central Bank Signals Trigger Sell-Off​

The decline intensified mid-week after policy signals from major central banks, including the US Federal Reserve, Bank of Japan, Bank of England, and the European Central Bank. Concerns over rising crude oil prices and persistent inflation indicated that monetary easing is unlikely in the near term, triggering a broad sell-off in precious metals.

Global Markets Mirror Weak Trend​

The downturn was also visible in international markets:

• Silver futures on Comex fell by USD 11.68 or 14.36 percent to USD 69.66 per ounce
• Gold prices declined by USD 486.8 or 9.6 percent to USD 4,574.9 per ounce over the week

Outlook Remains Range-Bound Amid Pressure Factors​

NS Ramaswamy, Head of Commodity and CRM at Ventura, said gold is likely to trade in a moderately bearish to sideways range in the near term. Prices may stabilize after the recent decline but could remain volatile on an intraday basis.

A strong US dollar, hovering near the 99 to 100 range, along with elevated interest rates, continues to weigh on gold prices. The US Federal Reserve’s stance against near-term rate cuts and rising energy costs complicating inflation control have pushed expectations of monetary easing further out to 2026.

Demand Support and Seasonal Factors​

Despite short-term pressures, central banks are expected to maintain their long-term gold accumulation strategies, supporting underlying demand.

Geopolitical developments continue to offer limited support, with gold retaining its role as a safe-haven asset during uncertain periods.

In the domestic market, seasonal demand linked to the upcoming wedding season and festivals such as Akshaya Tritiya is likely to provide some support to prices in the near term.