There will be a huge rise in gold and silver prices this week between Budget and India EU FTA, experts warn
New Delhi, PTI. Amid global uncertainty, gold and silver prices are expected to remain strong this week (Gold Price Hik). Traders are awaiting the US Supreme Court hearing on trade tariffs and the Federal Reserve's upcoming interest rate decision. Analysts said this.
He also says that the focus of traders will now also be on the Union Budget 2026-27 to be presented by Finance Minister Nirmala Sitharaman on February 1, which can impact the domestic gold market through changes in import duty and fiscal measures.
Expert said gold will run away
"Gold prices are likely to remain positive. If there is any downside in prices, it will be a buying opportunity as the focus will once again be on the US Supreme Court hearing in the Trump trade tariff case," said Pranab Mer, vice-president (commodity and currency research), JM Financial Services Ltd.
He said investors would also keep an eye on inflation data from the US, India and Germany, as well as trade and investment data from China and comments from Federal Reserve officials. The futures price of gold in Multi Commodity Exchange (MCX) increased by Rs 13,520 or 9.5 percent last week.
On Friday, it reached an all-time high of Rs 1,59,226 per 10 grams. Meanwhile, silver also remained bullish. During the week, it increased by Rs 46,937 or 16.3 percent and crossed the Rs 3 lakh per kg mark for the first time.
Prathamesh Mallya of Angel One said, “In MCX, demand for safe haven increased due to increase in US-Iran tensions and gold prices increased from Rs 1.43 lakh per 10 gram to almost Rs 1.6 lakh per gram during the week.”
Market risks due to US-Iran tension
He said that the US's decision to send warships to Iran and impose sanctions on the Iranian oil network has further increased the risks in the market. In the international market, gold futures prices in Comex increased by $ 384.3 or 8.4 percent last week and reached a record high of US $ 4,991.40 an ounce on Friday.
Meanwhile, silver prices rose by US $ 12.7 or 14.4 percent and crossed the historical level of US $ 100 an ounce for the first time. Finally it closed at US $ 101.33 per ounce.
Therefore, there is a possibility of rise in gold and silver
Motilal Oswal Financial Services Ltd. "Silver crossed the US$ 100 mark for the first time, while gold was just below US$ 5,000 on COMEX. Prices remained volatile throughout the week amid rapid changes in geopolitical and macroeconomic factors, moving between new highs and periods of profit-taking," said Manav Modi, Commodity Analyst, India Today.
Manav Modi Modi said that the demand for gold has increased after US President Donald Trump announced the imposition of 10 percent duty on Britain and some European Union countries. However, the rally in prices subsided to some extent later after Trump's soft comments on tariffs in Davos. These comments indicated a softening of his stance.
"The Federal Reserve is unlikely to make any changes in interest rates this month. However, given the weak labor market conditions, it is expected to cut interest rates at least twice this year," said JM Financial Services' Mer.
He said ETF investors continued to buy gold and silver ahead of the U.S. Supreme Court's decision on trading tariffs this week. Domestic commodity markets will remain closed on Monday to commemorate the 77th Republic Day.
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