Gold and silver prices have remained under pressure, raising concerns among buyers ahead of the festive and wedding seasons. With Dhanteras and Diwali approaching, demand for precious metals usually increases, but recent market movements have created uncertainty about whether prices will recover or continue falling.
Market experts believe several important global developments could influence gold and silver prices this week. These include the upcoming US midterm elections, economic data from major economies and developments in the West Asia conflict. The possibility of political changes in the United States is also being closely watched by investors.
Key Economic Events That Could Influence Gold and Silver Prices
Several important economic indicators are expected this week, including manufacturing and services Purchasing Managers’ Index (PMI) data from major economies, eurozone inflation figures, US unemployment data and nonfarm payroll numbers.
These developments could influence investor sentiment and determine the direction of precious metal prices.
Pranav Mer, Senior Vice President, EBG – Commodity and Currency Research at JM Financial Services, highlighted the importance of the upcoming US midterm elections scheduled for November 3. According to him, investors will also closely monitor President Donald Trump’s actions following the election.
The outcome could influence global financial markets and create movements in gold and silver prices.
Crude Oil Prices and West Asia Conflict Remain Important Factors
Crude oil prices are another major factor influencing the outlook for precious metals. Market experts are watching whether the US midterm election outcome will have any impact on the ongoing conflict in West Asia.
Any further escalation in the region could push crude oil prices higher. Brent crude has already been trading above $115 per barrel, while higher oil prices could put additional pressure on equity and commodity markets.
Since the conflict began on February 28 this year, crude oil movements have become an important factor influencing sentiment across global stock markets.
Pranav Mer noted that Brent crude had moved above $114 per barrel, while West Texas Intermediate (WTI) crude was trading close to $105 per barrel. He also highlighted the strong negative correlation between bullion and crude oil prices over the previous six to eight months.
Gold and Silver Prices on MCX: Weekly Performance
Gold and silver futures recorded significant losses on the Multi Commodity Exchange (MCX) during the week ending October 30.
December gold futures declined by ₹3,539, or 2.5%, during the week and settled at ₹1.38 lakh per 10 grams.
Silver futures witnessed a sharper fall, losing ₹16,587, or 8.5%, to close at ₹1.79 lakh per kilogram.
According to Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, selling pressure became stronger towards the end of the previous week.
Gold has faced considerable selling pressure over the past three weeks, falling by more than 6%. Despite the ongoing festive season, buying interest at higher price levels has remained limited.
International Gold and Silver Markets Also Witness Selling
The weakness in domestic bullion prices has also been reflected in international markets.
On the COMEX exchange, December gold futures declined by $109, or approximately 3%, during the previous week to settle at $3,898.9 per ounce.
Silver prices also recorded a substantial decline. The metal lost $4.67, representing a fall of nearly 9%, to reach $49.27 per ounce.
Jateen Trivedi believes uncertainty surrounding the US elections and tensions between the United States and Iran could generate occasional buying interest in precious metals.
However, broader macroeconomic conditions are expected to play a more significant role in determining the overall direction of gold and silver prices.
Disclaimer: This article is intended solely for general news and informational purposes. The gold and silver prices, market movements and expert views mentioned are based on the information provided in the source material and may change with market conditions. This article does not constitute investment advice or a recommendation to buy or sell gold, silver or any other financial instrument. Readers should consult a qualified financial adviser and verify the latest market prices before making investment decisions.