Overall, precious metals remain volatile
Gaurav Garg,
Research Analyst,
Lemonn Markets Desk
Mumbai, 27 February 2026: Gold prices remained largely range‑bound on Friday after the recent rally, with upside capped by a firmer US dollar and mixed global cues, while safe‑haven demand amid geopolitical uncertainty continued to underpin sentiment. On MCX, the February contract held near recent levels with only marginal easing, and Comex gold stayed below its recent highs, with the pause widely seen as consolidation driven by profit‑booking rather than a structural reversal.
Silver, in contrast, outperformed and advanced sharply, with MCX futures moving into the upper Rs2.6–2.7 lakh per kilogram range amid heightened geopolitical tensions and renewed safe‑haven buying. Sentiment remained cautious ahead of key US economic data and developments in US‑Iran negotiations, while expectations of resilient industrial demand continued to underpin prices. Overall, precious metals remain volatile but fundamentally supported, with the near‑term trend likely to stay data‑ and headline‑driven.
Kaynat Chainwala, AVP Commodity Research, Kotak Securities, adds:
Spot gold closed with modest gains at $5,185/oz yesterday, while silver slipped 1% to $88.3/oz, amid easing geopolitical risk premiums and rising expectations that interest rates will remain on hold for longer. Despite dovish remarks from Stephen Miran projecting up to 100 basis points of easing this year, market pricing pushed expectations for the first rate cut toward July, reflecting a mixed commentary by Fed officials and a hawkish undertone in the January FOMC minutes. This week, Austan Goolsbee signalled that rate cuts remain possible if inflation moderates further, while Susan Collins emphasized labor market strength, supporting a higher-for-longer stance. Similarly, Thomas Barkin noted that policy is already well positioned, suggesting no immediate need for adjustment.
Bullion prices rebounded sharply from intraday lows of $5,130/oz for gold and $85.2/oz for silver, supported by concerns over U.S. trade protectionism as Trump reiterated his commitment to expanding tariffs, alongside lingering uncertainty around U.S.–Iran negotiations. Today, gold trades near $5,180/oz, while silver holds above $89.5/oz amid soft U.S. Treasury yields. Sustained gains would likely require clearer signals of imminent rate cuts or renewed geopolitical escalation, as a firm dollar continues to cap upside.
WTI crude oil recovered from earlier losses yesterday, closing just 0.3% lower at $65.20/bbl after Iran indicated that recent talks in Geneva showed progress, though key sticking points remain unresolved. Washington seeks a complete halt to Iran’s uranium enrichment, while Tehran remains unwilling to fully comply, though it is open to limiting high-level activity. Iran continues to assert its right to peaceful nuclear energy and demands sanction relief, ruling out concessions on its missile program or regional proxies. Oil initially fell more than 2% on the resumption of U.S.–Iran talks, combined with a 16-million-barrel rise in U.S. crude inventories and expectations that OPEC+ may increase output by 137,000 bpd in April, all adding to supply side concerns. Today, oil prices edged higher to $65.5/bbl, reflecting next week's high-stakes meeting amid U.S. military buildup and staff reductions in the Middle East, keeping traders on edge.
