Mumbai: Gold held close to its seven week high on Friday as investors looked for more clues about the future direction of United States interest rates. Silver also remained strong, trading near its recent record peak as demand from both investors and industry continued to support prices.
Gold prices slipped slightly in early trade but stayed firm for the week. The metal has been rising since the US Federal Reserve delivered another rate cut, which made non interest assets like gold more attractive. A weaker US dollar has also helped gold remain strong.
Silver continued to hover near its historic highs after touching new peaks this month. Analysts say strong buying from industrial sectors such as electronics and renewable energy is helping silver outperform gold this year. The metal was also boosted after the United States added silver to its critical minerals list, increasing long term strategic interest.
Markets are now focused on upcoming US jobs data. Investors believe the numbers could give clearer signals about how quickly the Federal Reserve may cut rates in 2026. Lower interest rates generally support precious metals by reducing the cost of holding them.
In India, gold prices followed global trends and stayed above multi week highs in domestic markets. Silver also continued to trade at elevated levels after reaching close to the two lakh per kilogram mark. Some traders booked profits following recent gains, but overall sentiment remained positive.
Analysts say the next direction for precious metals will depend on global economic data, movements in the US dollar and further updates from the Federal Reserve.