Another move toward new record highs in gold would likely be triggered if geopolitical tensions broaden. (AI image)
Gold price prediction today: Gold and silver prices may see volatility with some consolidative bias in the coming days, says Maneesh Sharma, AVP – Commodities & Currencies, Anand Rathi Shares and Stock Brokers. He shares his outlook for gold and silver prices in the coming days:
- Gold price surpassed $4,450 in the current week after falling almost 4 % in the last week with the precious metal extending its upside today amid a renewed surge in geopolitical risk. This came with the United States (US) capture of Venezuelan President Nicolas Maduro.
- This action came without the approval of Congress which had also prompted global outcry. Trump added that the US will be running Venezuela until it can do a safe, proper, and judicious transition. A combination of market expectations of lower interest rates in the US and growing geopolitical frictions has underpinned support from precious metals over the last few sessions.
- President Donald Trump warned of another strike if Caracas resists US efforts to open up its oil industry and stop drug trafficking, and suggested possible action against Colombia and Mexico over illicit drug flows
- Russia announced the revision of its stance at the peace talks with Ukraine, after an alleged drone attack in one of President Vladimir Putin’s residences, while US President Trump has elevated his tone against Iran since last week.
- Federal Reserve Bank of Minneapolis President Neel Kashkari said on Monday that interest rates may be close to a neutral level for the US economy, leaving it to the incoming data to guide the central bank’s actions
- Bullion hit an all-time high of $4,549.92 on Dec. 26. with leading banks forecast further gains this year, especially with the Fed expected to deliver additional rate reductions and Trump reshaping the US central bank’s leadership
- Silver rose as much as 4% since the start of the week. In China, LONGi Green Energy Technology Co. said it would begin substituting base metals for silver in its solar cells in the latest move by the industry to mitigate the surging cost of the white metal.
- Traders are turning their attention to a slew of US economic data due this week, headlined by the December jobs report on Friday.
Gold & Silver Price Outlook
Gold: Weekly view – Cautious upside with Consolidative biasSilver: Weekly View – Volatile
- In the near term, there’s concern that a broad rebalancing of commodity indexes might put pressure on prices. The record-breaking rallies in gold and silver could push passive tracking funds to sell some contracts to match new weightings, beginning Thursday this week.
- Also Major commodity indices are set to sell a portion of their gold holdings based on the end-2025 price and their 2026 weight targets, potentially creating some turbulence in the short term
- Silver stands at risk of highly volatile moves in the medium term as exchanges may raise margin money again in case prices continue to trend upwards in the near term as CDE (Chicago Derivative Exchange) raised margin money twice for silver by 25% in the last month.
- Meanwhile another move toward new record highs in gold would likely be triggered if geopolitical tensions broaden further or if incoming US data reinforces expectations that the Fed will have to ease more aggressively than currently priced.
(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
