Gold and Silver Prices Expected to Rally in Coming Days Amid Global Uncertainty
The ongoing geopolitical and economic developments have intensified focus on gold and silver prices this week. The US Supreme Court ruling against reciprocal tariffs imposed by former President Donald Trump has led to a new 15% global tariff on all trading partners, sparking trade-related uncertainty. Simultaneously, tensions in Iran-US talks are fueling safe-haven demand, prompting investors to seek refuge in precious metals.
Recent Price Movements and Market Outlook
In overseas trade, Comex silver futures surged by $4.38, marking a 5.62% rise to settle at $82.34 per ounce over the past week. During the same period, gold climbed $34.6, or nearly 1%, to end at $5,080.9 per ounce. In the domestic derivatives market, silver futures on the Multi Commodity Exchange (MCX) surged Rs 8,584, a 3.5% gain for the week, while gold futures rose Rs 981, translating to an increase of nearly 1% over the same timeframe.
Prathamesh Mallya, DVP - Research, Non-Agri Commodities and Currencies at Angel One, noted that gold prices moved within a limited band in the week ending February 20, with MCX gold hovering between Rs 1.5 lakh and Rs 1.6 lakh per 10 grams. He attributed this to weaker economic readings from the United States and heightened geopolitical tensions, which supported bullion prices as market participants factored in potential interest rate reductions by the Federal Reserve.
Factors Driving the Rally
Mallya highlighted that fresh strains in the Middle East, the ongoing Russia-Ukraine war, and wider financial market instability have encouraged investors to seek protection in gold against uncertainty. Overall, the risk-off sentiment remained in precious metals last week. We expect gold prices might move higher towards Rs 1.61 lakh per 10 grams, he said.
Choice Broking pointed out that silver has also found support from improved liquidity conditions following the Lunar New Year, along with steady industrial demand from the solar and aluminium sectors. The brokerage added that rising geopolitical concerns, coupled with Trump’s decision to increase global tariffs following the US Supreme Court’s ruling, have reignited trade-related uncertainty and boosted demand for bullion as a defensive play.
Analyst Predictions and Key Data to Watch
Analysts suggest that gold and silver are likely to build on their recent advances in the coming week as investors turn to traditional safe-haven assets amid renewed trade frictions and escalating geopolitical tensions in the Middle East. They noted that traders will track a series of important macroeconomic releases for further direction in precious metals. These include:
- US Producer Price Index (PPI)
- Consumer confidence figures
- Weekly initial jobless claims
- People’s Bank of China’s decision on its lending rate
Gold and silver prices have declined steeply from their all-time highs recorded in late January 2026, experiencing a massive selloff. Currently, both metals are trading well below their lifetime highs. This week, market experts anticipate a recovery and rise in the coming days, though they are unlikely to hit recent highs immediately unless there is a major spike in geopolitical uncertainties driving investors to safe-haven assets like gold.
In summary, the combination of geopolitical tensions, trade policy shifts, and economic indicators is setting the stage for a potential rally in gold and silver prices, with analysts closely monitoring key data points for further insights into market trends.
