Gold, Silver Likely to Consolidate Next Week After Record Rally: Analysts
NEW DELHI: Gold prices are expected to see some consolidation and mild correction next week as the recent record-breaking rally appears overstretched and festive-season demand cools, analysts said.
After touching new highs in both global and domestic markets, bullion is likely to trade within a narrow range, with investors tracking the US funding bill, key economic data, and remarks from Federal Reserve officials ahead of the October 28–29 policy meeting.
“Gold prices may witness some correction or consolidation as most fundamentals are already priced in and physical demand eases post mid-week,” said Pranav Mer, Vice President, EBG – Commodity & Currency Research, JM Financial Services Ltd.
He noted that traders will be watching key indicators such as Chinese data, UK inflation, preliminary PMI readings, US consumer confidence, and the Fed’s commentary. Mer added that gold ended last week on a strong note, supported by festive buying in India and robust ETF inflows, though a “sharp corrective move” was seen on Friday due to profit-booking.
Gold futures on the Multi Commodity Exchange (MCX) rose by ₹5,644, or 4.65%, last week. December delivery contracts hit a record of ₹1,32,294 per 10 grams on Friday before settling at ₹1,27,008, ending a five-day record streak.
“The momentum in gold prices has remained strong through 2025, aided by policy uncertainty, US tariffs, and slowing economic growth,” said Prathamesh Mallya, DVP – Research, Non-Agri Commodities and Currencies at Angel One.
Echoing similar views, Karthick Jongadla, Investment Manager on smallcase and Founder of Quantace Research, said the rally was driven by a softer dollar, easing bond yields, and persistent US-China trade tensions. “Gold jumped to a new record this week, staying firm through Dhanteras,” he said, adding that India’s gold reserves with the RBI have now crossed USD 100 billion, indicating strong institutional demand.
On the global front, Comex gold futures for December delivery surged to a record USD 4,392 per ounce on Friday before slipping to USD 4,213.30, down 2.12%.
“Gold’s meteoric rise to new highs reflected renewed safe-haven demand as concerns resurfaced about cracks in the US financial system following reports of potential loan fraud at two regional banks,” said Riya Singh, Research Analyst – Commodities and Currency, Emkay Global Financial Services.
Meanwhile, silver followed suit, with MCX December futures hitting a record ₹1,70,415 per kilogram before closing at ₹1,56,604. The white metal gained ₹10,138, or 6.92%, last week.
“Silver prices extended their bull run alongside gold, up more than 15% till Thursday on reports of supply shortages and sustained ETF buying. However, sharp profit-booking on Friday wiped out more than half the gains,” Mer said.
On Comex, silver futures touched a record USD 53.76 per ounce before retreating 6% to USD 50.10. Singh noted that silver’s 2025 rally — nearly 87% year-to-date — has been fueled by tight supply and strong ETF accumulation, which has added 117 million ounces so far this year.
“More than 15 million ounces were withdrawn from Comex warehouses last week to meet shortages in London, while ETF inflows of 11 million ounces added further pressure to already tight inventories,” Singh said.
Looking ahead, analysts expect both gold and silver to remain volatile but broadly supported by macroeconomic uncertainty, central bank buying, and investor demand for safe-haven assets.
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