Gold eyes record highs as traders watch Powell speech, RBI policy

Gold and silver prices are gaining strong momentum and may move closer to record highs in the coming week, as investors track key US economic data, Federal Reserve Chair Jerome Powell’s recent comments, and the Reserve Bank of India’s upcoming policy decision.

On the Multi Commodity Exchange of India (MCX), the country’s largest platform for commodity futures trading, the gold futures contract that expires in February 2026, which is being traded now, rose by Rs 3,654 or 2.9 per cent last week to settle at Rs 1,29,504 per 10 grams. Silver futures for March 2026 also surged sharply, jumping by Rs 17,104 or nearly 11 per cent and touching Rs 1.75 lakh per kilogram for the first time. In global markets, COMEX gold reached USD 4,218 per ounce, while silver hit a record high of USD 56.45 per ounce.

The rally is supported by a weaker US dollar, expectations of an interest rate cut by the US Federal Reserve, steady safe-haven buying due to geopolitical tensions, and continuous gold accumulation by central banks. Domestic factors are also contributing, with strong festival and wedding demand, consistent jewellery purchases, and a weaker rupee keeping prices elevated in India.

Investors are particularly watching Jerome Powell’s recent remarks, which offered a cautious view of the US economy. Powell noted tha t the “downside risks to employment are rising,” pointing out that job growth and hiring activity have slowed. He also said the Federal Reserve will take a “meeting-by-meeting” approach, adding that there is “no risk-free path” for policy decisions as the central bank tries to balance inflation control with employment concerns. Powell emphasised that all future rate moves will depend entirely on incoming data, with nothing pre-decided.

These comments have strengthened market expectations that interest rates may not rise again and could even move lower, which typically supports gold and silver prices. Lower rates weaken the dollar and boost the attractiveness of precious metals as safe-haven assets.

With both global and domestic cues pointing in the same direction, traders expect bullion to remain firm. Analysts say silver’s strong breakout could push it further toward the Rs 1.9-2 lakh per kg range in the short term, while gold may attempt to retest its record highs if upcoming data reinforces the easing outlook.