New Delhi: Gold and silver prices are likely to witness sharp swings next week as traders weigh key economic data and brace for heightened geopolitical uncertainty after US forces captured Venezuelan President Nicolas Maduro, analysts said.
Investors will focus on key US data points, including ISM Manufacturing, December ADP employment numbers, and the unemployment rate, along with comments from a slew of Federal Reserve officials that could provide cues on the central bank’s monetary policy outlook and near-term direction for bullion prices, they added.
“Gold prices are likely to remain volatile in the week ahead as there are bullish as well as bearish factors at play,” Prathamesh Mallya, DVP - Research, Non - Agri Commodities and Currencies, Angel One, said.
After hitting record highs in late December, gold prices retreated in the past week. On the Multi Commodity Exchange (MCX), the yellow metal futures slumped by Rs 4,112, or 2.94 per cent.
The metal had surged to hit a record high of Rs 1,40,444 per 10 grams before slipping more than 3 per cent to settle at Rs 1,35,761 per 10 grams on Friday.
Silver prices, too, mirrored the precious metal’s volatility. On the MCX, the white metal depreciated by Rs 3,471, or 1.45 per cent, during the week.
After touching a record of Rs 2,54,174 per kilogram, silver prices tumbled by Rs 17,858, or 7.02 per cent, to finish at Rs 2,36,316 per kg on
Friday.
In the international market, Comex gold futures dipped by $223.1, or 4.9 per cent, during the holiday-shortened week to end at $4,329.6 per ounce on Friday.
Silver prices also declined sharply by 8 per cent, or $6.18, over the past week. It had hit a new record of $82.67 per ounce before tumbling 14.1 per cent, or $11.65, to settle at $71.01 per ounce.