Silver Gains 3 Percent While Gold Consolidates Ahead of Key Data
Silver futures rose nearly 3 percent last week, outpacing gold's 1 percent gain as traders brace for volatile data releases.
Silver futures on the Multi Commodity Exchange rose 6,629 rupees, or 3 percent, to close at 2.41 lakh per kilogram. Gold futures for October delivery gained 1,597 rupees, or 1.04 percent, to end at 1.54 lakh per 10 grams. These moves followed a week of heightened volatility driven by monetary policy decisions and geopolitical tensions.
Global markets saw Comex gold futures settle at 4,424.90 dollars per ounce. Silver in New York climbed 3 percent to 67.15 dollars. Analysts expect prices to remain range-bound this week as investors await new economic indicators.
Economic data drives market focus
Attention shifts to mid-month manufacturing and services Purchasing Managers' Index readings from major economies. Investors will also monitor US housing data, durable goods orders, and consumer sentiment figures. These releases provide critical cues for the outlook on monetary policy and bullion demand.
The US dollar index and Treasury yields pared gains as crude oil prices reversed mid-week. This occurred following the Federal Reserve's 25-basis-point rate hike. Traders are now assessing how these macro factors influence precious metal valuations.
Investor demand remains strong
Demand for gold has stayed upbeat for the past seven to eight trading weeks. Exchange-traded funds continue to see inflows across global markets. Silver futures tracked industrial metals, recovering from early declines to finish with strong gains.
Central bank decisions await
Major central bank events are now behind the market. The People's Bank of China is expected to announce its monetary policy on Monday. Rates are likely to remain unchanged. GN auto markets/commodities: silver prices will track these policy signals closely.
