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Gold Dips 1.82% Amid Volatility; Silver Surges on Soft US CPI Data

Gold prices declined by 1.82% over the week, with futures settling around Rs 1,56,200, as the market experienced significant volatility. Silver futures, however, saw a strong 3.62% gain on Friday, buoyed by softer-than-expected US CPI inflation data which weakened the dollar. Analysts note gold faces resistance near Rs 1,60,000 and could retest support at Rs 1,51,000 if it stays below Rs 1,56,000. Market participants forecast a 3-5 year bull run for both metals, driven by structural demand and macroeconomic conditions, but advise holding them as only 10-15% of a diversified portfolio.

Key Points: Gold Price Falls 1.82% Weekly, Silver Gains on US Inflation Data

  • Gold fell 1.82% weekly
  • Silver futures jumped 3.62% Friday
  • Softer US CPI data pressured dollar
  • Analysts see 3-5 year bull run
  • Recommend 10-15% portfolio allocation
2 min read

Gold dips 1.82 pc during week amidst macroeconomic volatility, soft US CPI data

Gold prices fell nearly 2% this week amid market volatility, while silver surged. Analysts discuss price targets and long-term bull run prospects.

"Gold traded positive in early session... but overall tone remains volatile to weak after sharp sell-off - Jateen Trivedi, LKP Securities"

Mumbai, Feb 14

Gold prices fell almost 1.82 per cent during the week, as investors remain cautious amid huge volatility with the dollar showing occasional bouts of strength.

Meanwhile on Friday, MCX gold February futures surged 0.20 per cent while MCX silver March futures added 3.62 per cent. Currently gold futures stand at Rs 1,56,200, while silver futures at Rs 2,44,999 per kg.

The price of 10 grams of 24-carat gold was at Rs 1,52,765 on Friday down from Rs 1,55,593 seen on Monday, according to data published by the India Bullion and Jewellers Association (IBJA).

Gold traded positive in early session on Friday, but overall tone remains volatile to weak after sharp sell-off from Rs 1,58,000 to Rs 1,54,000, as prices failed to sustain above the Rs 1,60,000 mark, said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

Resistance is now firmly placed near Rs 1,60,000, and if gold continues to trade below Rs 1,56,000, a retest of the Rs 1,51,000 support zone cannot be ruled out, the analyst said.

Gold and silver prices bounced back strongly on Friday buoyed by the softer-than-expected US CPI data which put pressure on the US dollar. The US Bureau of Labor Statistics reported the US CPI inflation of 2.40 per cent in January 2026 below market expectations of 2.50 per cent, however 0.30 per cent above the December 2025 CPI inflation.

Analysts said that structural supply deficits and industrial demand from green energy, EVs, AI and electronics for silver continue to underpin its bullish bias, also noting relentless gold accumulation by the central bank.

Market participants forecasted that gold and silver have entered a 3-5 year bull run, supported by favourable macroeconomic conditions, structural demand trends, and shifting investor preferences.

However, they maintained investors to only hold gold and silver as part of a diversified portfolio with 10 - 15 per cent of their portfolios in precious metals. Any incremental additions should be made during periods of correction, they added.

- IANS

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Reader Comments

R
Rohit P
Good analysis. The Rs 1,60,000 resistance is the key. If it breaks, we could see a new rally. For now, buying on dips near Rs 1,51,000 support seems the smart strategy. Silver's surge is interesting too.
A
Aman W
All this talk of a 3-5 year bull run feels a bit speculative. While gold is a safe haven, the volatility is tough for small investors. The 10-15% portfolio advice is sensible, don't put all your eggs in one basket.
S
Sarah B
Watching from the US, it's fascinating how interconnected markets are. Softer US CPI data immediately impacts gold prices in Mumbai. The global demand drivers for silver (EVs, AI) are very real.
K
Karthik V
Bhai, physical gold at ~Rs 1.52 lakh for 10gm is still very high for the common man. These corrections are minor. The real issue is making it an accessible investment beyond big weddings and jewellery.
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Nisha Z
My father always said gold is for generations. Short-term volatility doesn't matter if you're holding for 10+ years. The central banks buying is a strong signal for the long term.

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