Gold and silver prices in India took a breather this week after a prolonged rally, with analysts expecting consolidation in domestic markets next week amid upcoming global central bank meetings and trade developments.On the Multi Commodity Exchange (MCX), gold futures for December delivery fell by Rs 3,557, or 2.80 per cent, while silver futures crashed by Rs 9,134, or 5.83 per cent. The recent profit-booking follows record highs on October 17, when gold hit Rs 1,32,294 per 10 grams and silver touched Rs 1,70,415 per kg, as per news agency PTI.“Gold prices closed negative for the first time in ten trading weeks, on profit-booking at recent tops, weakening physical demand in Asian centres like India & China, and further weighed by a stronger US dollar,” said Pranav Mer, vice president, EBG — commodity & currency research, JM Financial Services Ltd, as quoted by PTI. He added that physical demand in India softened as buyers anticipated further price corrections, while lower prices sparked buying interest in China and Singapore.Global factors also weighed on bullion. Comex gold futures hit an all-time high of $4,398 per ounce on Monday but plunged $266.4, or 6.11 per cent, on Tuesday, marking the sharpest one-day fall in over a decade. “Gold witnessed its sharpest one-day decline in over a decade this week, retreating more than 6 per cent as investors booked profits following a prolonged record-setting rally,” said Riya Singh, research analyst at Emkay Global Financial Services.Renewed optimism around US-China trade talks and expectations from the US Federal Reserve also capped safe-haven flows into gold. “The sharp reversal is due to months of speculative positioning tied to expectations of deeper rate cuts by the Fed and concerns about fiscal weakness. Despite the steep correction, the broader outlook for gold remains bullish,” Singh said, as per PTI.She added that macro drivers such as persistent US deficits, central bank diversification away from the dollar, and geopolitical risks continue to support the long-term case for bullion.Silver mirrored gold’s weakness but suffered a sharper correction. International silver futures dropped over 8 per cent at one point, marking the steepest one-day fall since 2021. Singh noted that the decline was driven by profit-taking, easing supply concerns, and stronger US bond yields. “Silver’s fundamental outlook remains robust, supported by rising industrial demand from the solar photovoltaic and electric vehicle sectors,” she added.Traders said retail demand softened as consumers expected lower prices, though jewellers anticipate renewed buying interest during the ongoing wedding season. Mer expects silver to rebound to Rs 1,51,000-1,59,900 per kg once the market stabilises, while Singh forecasts a rise towards $60 an ounce over the next 8-12 months, provided investment flows and industrial demand remain strong.Analysts said bullion markets are likely to remain volatile but largely range-bound, with a bias towards consolidation ahead of key central bank meetings and global trade developments.
