Mumbai: Gold and silver prices rose on Friday after falling to near one week lows, as investors stepped in to buy the metals at cheaper levels following a sharp sell off earlier in the week.
Spot gold climbed about one percent to trade near the 4960 to 4980 dollar per ounce range, while US gold futures moved closer to the 5000 dollar level. Silver gained around two percent after suffering a steep decline in recent sessions. Other precious metals including platinum and palladium also recorded modest gains.
Despite the recovery, both gold and silver remain on track for weekly losses due to heavy selling pressure earlier in the week.
The recent fall in prices was largely driven by strong economic data from the United States. A solid jobs report signaled continued strength in the labour market, reducing expectations that the Federal Reserve will cut interest rates soon. Higher interest rates tend to reduce the appeal of gold because it does not provide interest returns.
A stronger US dollar also weighed on bullion prices, making gold more expensive for buyers using other currencies. Analysts noted that when gold dropped below the key 5000 dollar level, automatic selling and technical trading further accelerated the decline.
Friday’s rebound was supported by bargain hunting and renewed safe haven demand. Market uncertainty and volatility in global equities encouraged some investors to return to precious metals as a protective asset.
Silver saw a sharper rebound after its recent steep fall, reflecting its higher volatility and strong participation from speculative traders.
Investors are now closely watching upcoming US inflation data, which could influence Federal Reserve policy decisions. Market expectations currently suggest that any interest rate cuts may come later in 2026 rather than in the near term.
Analysts say gold may remain volatile in the short term as markets react to economic data, currency movements and bond yields. However, continued global uncertainty and long term central bank demand are expected to provide underlying support to prices.
The precious metals market is likely to remain sensitive in the coming weeks, with inflation data and interest rate signals expected to guide the next major price movement.