Geopolitical instability in West Asia and critical economic data from major global economies have intensified activity in the precious metals market. During the previous trading week, both domestic and international markets observed a positive trend in gold and silver prices. According to market analysts, the current market situation is primarily influenced by Iran-US relations and security concerns in the Gulf region. On top of that, global investors are now focusing on upcoming US economic indicators such as the unemployment rate and jobless claims, which will play a crucial role in determining future monetary policies.
Performance of Prices on MCX in the Domestic Market
Despite a shorter trading week due to public holidays, the Indian commodity market saw a significant rise in gold and silver prices. 65%. Similarly, silver for May delivery jumped by ₹4,541 per kilogram, reflecting a 2% increase. According to a report by Choice Broking, this recovery follows three consecutive weeks of decline. The record low of the Indian Rupee and weakness in the cryptocurrency market are cited as primary reasons for this surge, as investors shifted towards bullion as a safe-haven asset.
International Market and Global Economic Indicators
The bullish trend persisted in the international markets as well, while 43% for the week. 92 per ounce. According to JM Financial Services, gold prices have closed with strength for the second consecutive week. The market is now awaiting crucial data points including the US Services PMI, Durable Goods orders, Gross Domestic Product (GDP), Personal Consumption Expenditure (PCE) index, and Consumer Price Index (CPI). These figures are expected to influence the US Federal Reserve's future decisions regarding interest rates.
Geopolitical Tensions and Impact on Supply Chains
Ongoing tensions in West Asia have created an atmosphere of uncertainty in the market. Reports of Iran rejecting US peace proposals and its stance on maintaining control over the Strait of Hormuz have heightened concerns regarding global supply chains. Analysts state that any news of escalating tension in the Gulf region has a direct and immediate impact on gold prices, as it's considered the safest asset during times of crisis. Statements from former US President Donald Trump regarding Iran have also influenced market sentiment, leading to continued volatility in prices.
Silver Demand in China and Global Supply
The rise in silver prices is also attributed to strong industrial demand. 76 metric tons of silver during the first two months of 2026. This import level is the highest recorded in the last eight years. This growing demand for silver in China has put pressure on global supply, thereby supporting prices. Analysts believe that the increasing use of silver in solar energy and electronic devices keeps its physical demand strong, which acts as a floor against price drops.
RBI Monetary Policy and Domestic Factors
Indian investors are closely monitoring the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) meeting scheduled for this week. The RBI's stance on interest rates and inflation at the domestic level could Importantly impact market sentiment. According to analysts, any hawkish stance by the central bank could affect rupee liquidity and the demand for precious metals. Currently, amidst strong physical demand and global uncertainties, gold and silver prices are likely to remain within a limited range with a slight upward bias. Market participants note that continuous gold purchases by central banks and shifts in ETF flows will also be key factors in determining the direction of prices.