Gold and silver prices attracted considerable attention during the Diwali and Dhanteras celebrations. However, with the festive occasions now over, market experts expect both precious metals to remain under pressure this week.
Investors are likely to track developments in West Asia, changes in crude oil prices and upcoming inflation data from major economies. Comments from US Federal Reserve officials and employment figures will also influence market sentiment.
The domestic commodities market is scheduled to remain closed during the morning session on Tuesday, November 10, due to Diwali-Balipratipada.
Inflation Data from Major Economies in Focus
Market participants will closely monitor October inflation figures from the United States, China, Germany and Japan. India’s October inflation data is also awaited and will be an important indicator for investors.
Apart from inflation reports, speeches by Federal Reserve officials and US employment data will be watched for clues about the country’s economic outlook.
Economic indicators from China will be particularly important for industrial metals. Silver is among the metals that attract attention in this regard because it serves both as an industrial commodity and a precious metal.
Gold and Silver Momentum Remains Weak
Pranav Mer, Senior Vice President, EBG – Commodity & Currency Research at JM Financial Services, said the momentum in gold and silver remains weak. He noted that investors would be monitoring inflation figures from China, the US, Germany, Japan and India, along with comments from Federal Reserve officials.
According to Mer, developments in diplomatic efforts to resolve the US-Iran conflict will also remain important. Investors will additionally follow the progress of peace negotiations between Russia and Ukraine.
Gold and Silver Prices Recorded Strong Weekly Gains
Despite facing some selling pressure, gold and silver posted significant gains in international markets last week.
December delivery Comex gold futures climbed by $176, or 4.5%, to settle at $4,074.90 per ounce. Silver also moved higher, gaining $2.60, or 5.4%, to close at $51.94 per ounce.
Analysts said stronger-than-expected US nonfarm payroll figures and improving consumer sentiment initially put pressure on bullion prices. These developments supported the US dollar and Treasury yields, creating challenges for gold and silver.
However, prices recovered sharply during the middle of the week following the US midterm election results, which showed Democrats securing major victories in both the Senate and the House against Republicans. According to Mer, the rally helped gold and silver finish the week with gains of more than 4% in global markets.
Safe-Haven Demand Supports Bullion
Another factor supporting gold and silver last week was increased demand for safe-haven assets. This followed a decline in shares of artificial intelligence, data centre and technology companies in the US and other markets.
However, the recovery did not continue without interruptions. Gold and silver futures came under fresh selling pressure on Friday, November 6, as traders reassessed market conditions.
Disclaimer: This article is intended for general information and market awareness. Gold and silver prices are subject to fluctuations and may change in response to economic data, geopolitical developments and market conditions. Nothing in this article should be considered financial or investment advice. Readers should consult a qualified financial adviser before making investment decisions.