Gold and Silver Correction: Precious Metals Retreat After Record Rally; Analysts expect consolidation amid global signals – The Times of India

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 percent, while silver futures crashed by Rs 9,134, or 5.83 percent. The recent profit booking follows record highs on October 17, when gold touched Rs 1,32,294 per 10 gram and silver Rs 1,70,415 per kg, according to news agency PTI.“Gold prices closed negative for the first time in ten trading weeks on profit booking at recent highs, weakening in physical demand in Asian centers like India and China, and further pressured 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 declined as buyers expected further price corrections, while lower prices fueled buying interest in China and Singapore.Global factors also weighed on the precious metal. Comex gold futures hit a record high of $4,398 an ounce on Monday but fell $266.4, or 6.11 percent, on Tuesday, marking the sharpest one-day decline in more than a decade. “Gold witnessed its sharpest single-day decline in more than a decade this week, retreating over 6 percent as investors booked gains after an extended record rally,” said Riya Singh, research analyst at Emkay Global Financial Services.Renewed optimism around US-China trade talks and US Federal Reserve expectations also limited safe-haven flows into gold. “The sharp reversal is due to months of speculative positioning, coupled with expectations of deeper Fed rate cuts and concerns over fiscal weakness. Despite the steep correction, the broader outlook for gold remains bullish,” Singh said, according to PTI.She added that macro factors such as persistent US deficits, central bank diversification against the dollar and geopolitical risks continue to support the longer-term case for bullion.Silver mirrored gold’s weakness, but suffered a sharper correction. International silver futures fell more than 8 percent at one point, marking the steepest single-day decline since 2021. Singh noted that the decline was driven by profit-taking, easing supply concerns and higher 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 weakened as consumers expected lower prices, although jewelers anticipate renewed buying interest during the ongoing wedding season. Mer expects silver to recover to Rs 1,51,000-1,59,900 per kg once the market stabilizes, while Singh predicts a rise towards $60 per ounce in the next eight to 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.