India’s gold and silver markets are poised for pronounced volatility in the coming week as traders grapple with heightened geopolitical uncertainty following the capture of Venezuelan President Nicolás Maduro by US forces and a fresh slate of major US economic data releases, analysts said.

Precious metal prices, which ended 2025 on a tumultuous note after record highs, are expected to swing sharply as investors balance safe-haven demand against competing macroeconomic signals. Geopolitical developments have taken centre stage after US military action in Venezuela — a country with significant oil and commodity reserves — heightened risk perceptions across global markets.

As per market analysts, Gold prices are likely to remain volatile in the week ahead as there are bullish as well as bearish factors at play. They also noted that markets will also watch upcoming US ISM manufacturing data, ADP employment figures and the unemployment rate to assess Federal Reserve policy direction.

After hitting a record high earlier this year on India’s Multi Commodity Exchange (MCX), gold prices corrected late in 2025. The yellow metal futures dropped by nearly Rs 4,112, or 2.9 per cent over a recent week, slipping from a peak of Rs 1,40,444 per 10 grams to around Rs 1,35,761 per 10 grams. Silver also mirrored this volatility, declining from its record high of Rs 2,54,174 per kilogram to about Rs 2,36,316 per kilogram over the same period.

Geopolitical tensions, however, have reinforced safe-haven demand. Analysts said the capture of Maduro, widely reported in global markets, could prompt renewed interest in bullion as investors reposition portfolios. Historically, geopolitical stress tends to drive inflows into gold and silver, with oil markets also sensitive to such risk premiums given Venezuela’s position as a significant energy reserve holder.

Source: Businessworld