Will gold, silver prices continue to trade weak on May 20, 2026?

Inflation and interest rates will remain the key drivers for gold and silver in the week ahead. (AI image)

Gold price prediction today: For both gold and silver prices, the near-term outlook remains weak, says Vedika Narvekar, Research Analyst – Commodities & Currencies, Anand Rathi Shares and Stock Brokers.Spot gold and silver ended last week sharply lower, falling nearly 3.7% and 5.4% respectively, and the weakness has continued this week with both metals losing another 1.5%. A hotter-than-expected inflation print, elevated oil prices, and rising US Treasury yields have continued to pressure non-yielding assets like gold and silver. Sentiment weakened further as markets increased bets on additional rate hikes, while a stronger US dollar added to the downside pressure.Gold also faced some pressure from expectations of softer Indian demand following recent policy and import duty changes. India remains one of the world’s largest consumers and importers of gold, making its demand trends important for global prices. On the positioning side, Asian investors reduced futures longs and sold ETFs, while North American investors continued to add ETF inflows and increase net long positions. International spot gold is currently trading near $4,475/oz and has fallen nearly 15% since the Iran conflict began, as markets scale back expectations of aggressive monetary easing.Silver has remained highly volatile in recent sessions. After rallying strongly toward $90/oz earlier last week on optimism around AI-related demand and data-center infrastructure growth, prices corrected sharply and recently traded near $73.5/oz. Rising bond yields and concerns over prolonged higher interest rates triggered profit booking across precious metals. However, unlike gold, silver also benefits from strong industrial demand due to its extensive use in electronics, solar panels, semiconductors, EVs, and advanced technology applications. This industrial demand continues to support silver’s longer-term outlook despite short-term price weakness.Focus for the WeekInflation and interest rates will remain the key drivers for gold and silver in the week ahead. Markets will closely watch the FOMC Meeting Minutes for further clarity on the Federal Reserve’s outlook and any guidance on future rate moves. The minutes are expected to reinforce the view that the easing cycle may be nearing an end, which could continue to keep pressure on precious metals.Technical Levels & Near-Term OutlookGold (Spot) CMP: $4,470/oz

MCX Gold CMP: ₹1,58600

The overall bias for gold remains slightly negative in the near term. However, it is important to note that gold is approaching the lower end of its recent consolidation range between $4,400 and $4,800. Any headlines related to a ceasefire or de-escalation in geopolitical tensions could trigger temporary rebounds or short-covering rallies in gold prices.Silver OutlookFor silver as well, the near-term bias remains weak due to the high interest rate environment and its potential impact on economic growth and industrial demand. However, the long-term structural demand outlook remains positive, supported by growing usage in solar energy, electronics, EVs, and advanced technologies.International Silver CMP: $74.80/oz

MCX Silver CMP: ₹2,70,000

(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India.)