Are Gold and Silver Prices Set to Drop Further? Analysts Share New Predictions

Gold and silver prices managed a mild rebound on Wednesday, but both metals remain far below their recent record highs. With key US economic data approaching and expectations shifting around Federal Reserve policy, investors are questioning whether the correction in precious metals is just beginning—or nearing its end.

US Economic Events Now Driving Market Sentiment

Traders are closely watching two major releases this week:

• The September non-farm payrolls report, postponed due to the recent US government shutdown.
• The Federal Reserve meeting minutes, which will offer more clues about future monetary policy.

Growing signs of a cooling US labour market are also shaping price expectations. Fed Governor Christopher Waller said many companies are preparing for slower customer demand and even discussing possible layoffs as they rely more on AI-driven productivity. This weakening labour outlook has strengthened predictions of additional Fed rate cuts—an important factor influencing gold and silver.

Gold & silver price update: What the next move could be.

What Analysts Predict for Gold in the Near Term

According to Ponmudi R, CEO of Enrich Money, both international and domestic gold prices have eased from recent peaks but are still resting above essential support levels.

• MCX Gold is holding support near ₹1,21,800–₹1,21,000, with yesterday’s hammer candle strengthening the buying zone.
• Near-term resistance is located around ₹1,23,400 and ₹1,24,000.
• On COMEX, gold has successfully defended the crucial $4,000 psychological level.
• The next major resistance appears at $4,085, and a break above this could open a pathway toward $4,100–$4,123.

These levels will determine whether gold resumes an upward trend or extends its pullback.

Silver Prices Could Face More Volatility

A report from Emkay Wealth Management highlights that silver remains more volatile than gold, making its short-term direction harder to predict.

Key levels to watch include:

• A possible bounce back toward $52–$53, followed by targets at $58 and $62.
• Strong technical support at $47.60, with deeper support seen at $45.60 and $42.00.

Silver is currently trading near $48.80 per ounce, after experiencing profit-booking and some easing in US-China trade restrictions on strategic minerals.

Because of silver’s rapid price swings, Emkay suggests viewing new investments as short-term tactical positions, ideally with a 6–12 month holding horizon and predefined exit levels.

Final Outlook: More Downside Possible, but Support Zones Still Intact

Although both gold and silver have cooled from their highs, analysts note that major support zones remain unbroken. Upcoming US economic data, labour-market developments, and the Fed’s policy outlook will be key in determining whether precious metals continue their slide or begin forming a new base.

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