Gold Holds Steady as Traders Track US Inflation Data, Silver Braces for Volatility

Analysts say gold prices likely to trade firm next week, while silver may remain volatile amid shifting risk sentiment and speculative activity.

Published on Feb. 8, 2026

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Gold prices are expected to trade firmly next week as traders await key economic data, including US inflation numbers, for fresh cues on interest rate outlook. However, silver may remain volatile amid shifting risk sentiment and speculative activity, according to analysts. Traders will closely watch US GDP, PMI, non-farm payroll, and inflation data, as well as inflation readings from China, Germany, and India. Speeches from US Federal Reserve officials will also be closely tracked for indications on the timing of potential rate cuts and their impact on bullion prices.

Why it matters

The performance of gold and silver is closely watched as they are considered safe-haven assets that can provide protection against inflation and economic uncertainty. Volatility in these precious metals can have ripple effects across financial markets and impact investor sentiment.

The details

During the past week, gold futures climbed 5.2% on the Multi Commodity Exchange, while silver slumped nearly 6%. The commodities market remained open on Sunday due to the presentation of the Union Budget by India's Finance Minister. Analysts say the unwind in gold and silver was severe, with gold recording its sharpest decline in nearly four decades and silver languishing due to heavy call option positioning, margin calls, and speculative-driven liquidation. However, signs of stabilization have emerged as forced liquidation eased and value buying returned across both metals.

  • On February 8, 2026, gold futures climbed Rs 7,698, or 5.2%, while silver slumped Rs 15,760 or nearly 6% on the Multi Commodity Exchange.
  • The commodities market remained open on Sunday due to the presentation of the Union Budget by Finance Minister Nirmala Sitharaman.

The players

Pranav Mer

Vice President, EBG - Commodity and Currency Research, JM Financial Services.

Manav Modi

Analyst - Commodities, Motilal Oswal Financial Services Ltd (MOFSL).

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What they’re saying

“Gold consolidation and recovery suggest that bias still remains positive. However, in case of silver, we remain cautious of volatility and further corrections.”

— Pranav Mer, Vice President, EBG - Commodity and Currency Research, JM Financial Services

“The unwind was severe: gold recorded its sharpest decline in nearly four decades, while silver languished, amplified by heavy call option positioning, margin calls and speculative driven liquidation.”

— Manav Modi, Analyst - Commodities, Motilal Oswal Financial Services Ltd (MOFSL)

What’s next

Traders will look for cues from upcoming US economic data releases, including GDP, PMI, non-farm payroll, and inflation figures. Speeches from US Federal Reserve officials will also be closely watched for indications on the timing of potential rate cuts and their impact on bullion prices.

The takeaway

The volatility in gold and silver prices highlights the sensitivity of these safe-haven assets to shifting economic conditions and policy expectations. Investors will need to closely monitor macroeconomic developments and central bank actions to navigate the near-term uncertainty in the precious metals market.