Gold outlook for the week: Yellow metal could once more be near record highs — what analysts have to say
“Gold moves out of the consolidation range as investors focus on the manufacturing and services PMI data from across regions, US jobs data, and consumer sentiments,” Pranav Mer, Vice President, EBG – Commodity & Currency Research, JM Financial Services Ltd, said, as quoted by PTI.“Adding to that would be Fed chair Jerome Powell’s speech on Monday, developments over the Russia-Ukraine peace talks and RBI policy meeting on Friday, all of which will be closely monitored by traders,” he added.MCX gold futures for February 2026 contract increased by Rs 3,654, or 2.9 per cent, during the past week, ending at Rs 1,29,504 per 10 grams on Friday.In India’s markets, the rupee’s performance and domestic demand have influenced gold price fluctuations.
Festival season, wedding celebrations and steady jewellery buys continue to bolster precious metal prices, according to Prathamesh Mallya of Angel One.Mallya noted that continuous gold acquisition by global central banks would sustain positive long-term prospects.
“Central banks have been accumulating gold for the past few years, and the trend will continue going into 2026.”Karthick Jonagadla from Quantace Research stated: “For investors, gold is a clean way to express a view on the US real-rate path while staying within a familiar asset.”He indicated that while December cut probabilities remain high, the outlook stays moderately positive for bullion, though any unexpected data could reverse recent gains rapidly.Meanwhile, Pranav Mer of JM Financial Services said, “Gold prices rallied more than a per cent, after trading resumed on CME after an 11-hour outage.
The bullions remained supported by a weaker US dollar, dovish commentary from a couple of Fed officials and rising bets for an eminent 25 basis points rate cut by the US Federal Reserve.”Silver demonstrated remarkable performance, surpassing gold’s gains.On MCX, silver futures increased by Rs 17,104, or 10.83 per cent, over the week.
The March 2026 delivery contract exceeded Rs 1.75 lakh per kilogram for the first time on Friday.In international markets, Comex silver futures for December delivery rose by $6.53, or 13.09 per cent, during the week to finish at $56.44 an ounce.
It increased by $3.53, or 6.68 per cent, reaching $56.45 per ounce on Friday.“Silver advanced and moved…
to its record high amid dovish signals from Federal Reserve officials and the delayed release of key US data have strengthened confidence that borrowing costs will fall, with swap markets now pricing an 80 to 87 per cent chance of a quarter-point cut next month,” Riya Singh from Emkay Global Financial Services said.Mer also concurred, noting that silver’s surge was enhanced by strength in industrial metals, particularly copper, which also achieved its highest level on the LME.“Silver prices have given a strong breakout above Rs 1,64,000 per kilogram level and rallied sharply.
The momentum can push prices further up towards Rs 1,90,000-2,00,000 per kg levels in short-term,” he added.Analysts suggest gold might test its record highs if upcoming data supports the easing outlook, given persistent rate-cut expectations, US dollar weakness and steady safe-haven demand amidst geopolitical uncertainties.
