PRECIOUS metal prices are likely to consolidate with a mild recovery bias next week after a sharp correction, though the upside may remain capped amid elevated interest rates and a firm US dollar, analysts said. Investors will track key macroeconomic data, including provisional manufacturing and services PMI readings from the US, UK and Japan, along with consumer sentiment and jobless claims for direction. “In the week ahead, gold price may see some consolidation and slight recovery before prices make their next move either side,” Pranav Mer, Vice President, EBG - Commodity & Currency Research, JM Financial Services Ltd, said. In the domestic market, precious metal prices witnessed steep losses last week.

 

On Multi Commodity Exchange, silver tumbled by Rs 32,663, or 12.59 per cent, to settle at Rs 2.26 lakh per kilogram, while gold dropped by Rs 13,974, or 8.82 per cent, to close at Rs 1.44 lakh per 10 grams. Mer said the correction in gold prices continued last week, with domestic prices falling below Rs 1.45 lakh per 10 grams, reflecting a sharp decline of around 9-9.5 per cent. The selloff accelerated mid-week following policy signals from central banks, including the US Federal Reserve, Bank of Japan, Bank of England, and the European Central Bank, which flagged concerns over rising crude oil prices and inflationary pressures, indicating that monetary easing is unlikely to come any time soon.