Gold and silver prices are likely to remain in focus during the Navratri week as traders track US inflation data, Treasury yields, Federal Reserve policy expectations and escalating geopolitical tensions in the Middle East. After facing pressure earlier in the week, both precious metals recovered towards Friday as the dollar and US bond yields eased, although expectations of further monetary tightening continue to pose a risk to the outlook.
On the Multi Commodity Exchange (MCX), gold futures for December delivery rose ₹1,893, or 1.27%, to ₹1,51,503 per 10 grams on Friday, supported by fresh positions and firm spot demand. The contract traded in a business turnover of 5,341 lots. Gold also gained around 1.3% over the week, recovering from a two-month low recorded earlier.
Silver, meanwhile, traded at ₹2,25,820 per kg on Friday, up ₹65, or 0.03%. The metal also recovered from its early-week decline, although its overall technical trend remains weaker than gold's.
The recovery in precious metals followed easing US Treasury yields and a softer dollar, which helped offset concerns over persistent inflation and the possibility of further Federal Reserve rate hikes. In the domestic market, the rupee's weakness near record lows provided additional support to bullion prices by making dollar-denominated commodities more expensive.
The near-term direction of gold and silver will depend on whether the dollar and global bond yields continue to ease. A further decline in yields could support prices, while persistent inflation and expectations of additional rate hikes may limit gains. Geopolitical developments in the Middle East and movements in the rupee will also remain important drivers for domestic bullion.