Gold and silver futures closed a turbulent week with sharp gains across domestic and global exchanges, but trading desks are already bracing for an abrupt stall. On the Multi Commodity Exchange, December gold futures gained ₹3,682—nearly 3%—over the past week to settle at ₹1.42 lakh per 10 grams. Silver futures pushed higher alongside, climbing ₹5,655, or 3.15%, to finish at ₹1.84 lakh per kilogram. In overseas trade, Comex December bullion advanced $176, or 4.5%, to end at $4,074.9 per ounce, while Comex silver contracts jumped 5.4% to $51.94 per ounce. Yet the rebound masks persistent structural headwinds.
Bargain hunters supported the market after a rocky start. Stronger-than-expected US nonfarm payroll data and firmer consumer sentiment initially lifted Treasury yields and the dollar, triggering aggressive mid-week liquidations. But the trajectory reversed. Bullion caught fresh bids following US midterm election returns showing Democrats sweeping both the Senate and the House. Capital rotating out of beaten-down artificial intelligence and data center shares provided additional shelter buying, while traders rushed to cover short exposure. The recovery hit resistance on Friday as sharp pullbacks in industrial metals—led by copper—dragged precious complexes off their peaks.
| Contract | Weekly Change | Percentage Move | Closing Price |
|---|---|---|---|
| MCX Gold (Dec) | +₹3,682 | +2.98% | ₹1.42 lakh / 10g |
| MCX Silver | +₹5,655 | +3.15% | ₹1.84 lakh / kg |
| Comex Gold (Dec) | +$176.0 | +4.51% | $4,074.9 / oz |
| Comex Silver | +$2.60 | +5.40% | $51.94 / oz |
Market participants face an intense macroeconomic calendar. Inflation prints due from China, the US, Germany, Japan, and India will dictate interest rate expectations and sovereign debt pricing throughout next week. Speeches from Federal Reserve officials and fresh US employment indicators will also test appetite for non-yielding bullion.
"Gold and silver's momentum remains down as investors will focus on the inflation data from China, the US, Germany, Japan, India, etc along with some Fed officials' commentary," said Pranav Mer, senior vice president for commodity and currency research at JM Financial Services Ltd. Mer noted that Chinese economic indicators will carry outsized weight in setting the path for industrial precious metals.
Geopolitics remains the wild card. US President Donald Trump confirmed fresh military strikes on Iran while asserting that Washington has simultaneously made "a lot of progress" in negotiations with Tehran. Markets are also monitoring talks regarding the Russia-Ukraine conflict and volatile crude oil pricing. Any sudden diplomatic resolution could quickly strip out the geopolitical risk premium sustaining bullion prices.
Local jewelers will look to festive retail buying around Diwali to support physical spot premiums. Domestic exchange trading will pause briefly next week, with the commodity market closed during Tuesday's morning session for Diwali-Balipratipada before normal order matching resumes for the evening shift.