Gold, Silver Prices Seen in Corrective Phase Next Week Amid West Asia Tensions and Key Global Data

Gold, Silver Prices Seen in Corrective Phase Next Week Amid West Asia Tensions and Key Global Data​

New Delhi, March 29
Precious metal prices are likely to remain in a corrective phase in the coming week as investors closely monitor geopolitical developments in West Asia and a series of key macroeconomic indicators from major global economies.

Focus on Fed Signals and Global Economic Data​

Market participants are expected to track comments from US Federal Reserve Chair Jerome Powell on Monday, along with speeches from other Fed officials later in the week. These cues are anticipated to provide direction on monetary policy, which could significantly influence bullion demand.

According to Pranav Mer, Vice President, Commodity and Currency Research at JM Financial Services Ltd, developments in West Asia will remain a critical factor. Any signs of escalation or de-escalation in the region could drive volatility across financial markets.

On the macroeconomic front, attention will be on manufacturing PMI data from major economies, inflation readings from Germany and the Eurozone, and key US indicators including consumer confidence, nonfarm payrolls, and employment data scheduled later in the week.

Holiday-Shortened Week May Impact Trading Volumes​

Trading activity in domestic commodity markets is expected to remain subdued due to market closures on March 31 and April 3 for Shri Mahavir Jayanti and Good Friday.

Domestic Market Performance​

In the Indian market, gold futures ended the week marginally lower at ₹1.44 lakh per 10 grams. In contrast, silver prices recorded gains, rising by ₹1,182 or 0.52 percent to settle at ₹2.27 lakh per kilogram on the Multi Commodity Exchange.

The domestic bullion market has been supported by continued weakness in the Indian rupee against the US dollar. The rupee declined by more than 1 percent during the week, closing near 94.80.

Mer noted that recent pressure on bullion prices was driven by liquidation from exchange traded fund investors, subdued physical demand, a stronger dollar, and elevated US Treasury yields.

Global Trends in Gold and Silver​

In international markets, gold prices declined nearly 2 percent to settle at USD 4,492.5 per ounce. Silver, however, posted a marginal gain to close at USD 69.79 per ounce.

Silver witnessed a notable recovery after a prolonged decline, tracking gains in global markets. Weakness in US equity markets supported safe-haven demand, although gold’s traditional appeal showed signs of moderation amid rising Treasury yields and elevated oil prices.

Choice Broking noted that silver posted a strong weekly recovery after a prolonged decline, supported by gains in global markets.

Geopolitical Tensions and Dollar Strength in Focus​

Analysts highlighted that ongoing tensions in West Asia continue to be a major driver of volatility in bullion prices. While there was temporary relief after US President Donald Trump indicated a 10-day pause on attacks targeting Iran’s energy infrastructure, the dollar index remained near 100, limiting upside in precious metals.

Outlook for the Week Ahead​

Choice Broking said gold prices are expected to trade in a sideways to bullish range in the coming week, as traders assess incoming US economic data during the holiday-shortened Easter week.

Silver sentiment remains supported by strong physical demand from China. Imports reached an eight-year high of 206.76 metric tonnes in the first two months of 2026, marking a sharp rise of 49 percent month-on-month and 5,910 percent year-on-year. This surge has tightened global supply and provided additional support to prices.