NEW DELHI, Oct 26: Gold prices are likely to consolidate in the coming week as investors brace for major global events, including the US Federal Reserve’s policy meeting, the Trump–Xi summit in South Korea, and the European Central Bank’s policy review, analysts said.
After a 10-week rally, gold turned negative, falling 2.8 per cent on the MCX due to profit-booking, weaker physical demand in India and China, and a stronger US dollar.
On Comex, gold futures slipped 1.8 per cent, with a sharp 6 per cent one-day plunge—the biggest in over a decade—after hitting a record high of USD 4,398 per ounce.
Analysts attributed the decline to profit-taking, easing trade tensions, and technical corrections but maintained that long-term fundamentals remain strong, supported by persistent US fiscal deficits, central bank diversification away from the dollar, and ongoing geopolitical risks.
Silver followed suit, falling 5.8 per cent on the MCX and over 8 per cent globally after reaching a record USD 53.76 per ounce.
Analysts said the correction was amplified by easing supply concerns and stronger US bond yields.
Despite the pullback, silver’s outlook remains positive, driven by industrial demand from the solar and EV sectors. Overall, bullion markets are expected to remain volatile but largely range-bound with a consolidation bias. (PTI)
