Gold, Silver May Extend Rally On Global Trade Uncertainty

Gold and silver are likely to remain supported next week as investors continue to seek safety amid renewed global trade tensions and rising geopolitical risks. Analysts indicated that bullion demand has been boosted following the announcement by US President Donald Trump to impose higher global tariffs on trade, which has reinstated the doubt with regard to the global trade flows.

Also, growing tensions in the Middle East and the current Russia-Ukraine conflict situation have also reinforced safe-haven demand, causing investors to switch to precious metals as a hedge to volatility.

How Did Gold And Silver Perform Last Week?

On the Multi-Commodity Exchange (MCX), silver futures rose ₹8,584 (3.5%), and gold gained ₹981 (nearly 1%).

MCX gold traded in a narrow band between ₹1.5 lakh and ₹1.6 lakh per 10 grams during the week ended 20 February 2026.

Market experts said softer US data and geopolitical tensions have increased expectations of potential Federal Reserve rate cuts, which supported gold prices. They added that gold could move towards ₹1.61 lakh per 10 grams in the near term. It was also highlighted that post the Lunar New Year, improved liquidity and steady industrial demand, particularly from the solar and aluminium sectors, have supported silver prices.

How Did International Prices Move Last Week?

In global markets:

• Comex silver futures rose from USD 4.38 (5.62%) to USD 82.34 per ounce.

• Comex gold climbed from USD 34.6 (nearly 1%) to USD 5,080.9 per ounce.

Market experts noted that gold broke above USD 5,080 per ounce after the US Supreme Court ruling on global tariffs triggered fresh volatility and safe-haven buying.

Although the US dollar initially weakened to 97.8, it later recovered after Trump announced a 10% global tariff through executive order and subsequently indicated a rise to 15%, keeping investors cautious and supporting bullion.

Other geopolitical threats, such as an augmented US military presence in Iran, also enhanced the popularity of gold and silver.

What Key Triggers Are Markets Watching?

Market participants are closely tracking several global economic indicators for direction, including:

• US Producer Price Index (PPI)

• Consumer Confidence Data

• Weekly initial jobless claims

• Regional Federal Reserve indicators

• The People’s Bank of China’s lending rate decision

According to industry experts, these data points may play a crucial role in shaping near-term trends in bullion.

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What Does This Mean For Investors?

To investors, the present boom in gold and silver can be attributed to increased global uncertainty and not necessarily to fundamental changes in demand. With trade tensions resurfacing and geopolitical risks intensifying, precious metals are benefiting from safe-haven flows.

In the short run, the direction of prices can be strongly conditioned by US inflation rates, Federal Reserve rate forecasts, dollar fluctuations, and the situation in the Middle East. If volatility persists and rate-cut expectations strengthen, bullion could see further upside.

However, any stabilisation in trade policy or a stronger dollar may limit gains. Investors should stay alert to macro signals, as precious metals are currently being driven more by global risk sentiment than by physical demand alone.

Sources

Economic Times

CNBCTV 18