Gold and silver are expected to extend their recent rally next week, with global inflation data, Federal Reserve policy expectations, a weaker dollar and geopolitical developments in West Asia likely to influence bullion prices.
Key Highlights:
- Gold and silver are expected to remain positive next week.
- Domestic gold futures gained nearly 6% during the week.
- Silver futures surged nearly 7% on the MCX.
- Gold closed at around Rs 1.51 lakh per 10 grams.
- Silver settled at around Rs 2.31 lakh per kg.
- Gold may move towards Rs 1.57 lakh per 10 grams.
- Silver could rise towards Rs 2.80 lakh per kg.
- US, Germany, Japan and India inflation data will be closely watched.
- US-Iran developments could trigger higher bullion volatility.
Gold and silver prices are expected to extend their gains next week as investors closely monitor inflation data from major economies and developments surrounding efforts to end hostilities in West Asia.
Analysts said bullion prices are likely to maintain a positive bias, with economic data from the US, Germany, Japan and India expected to influence market sentiment. Upcoming Chinese economic data will also remain important, particularly for industrial metals.
Gold and silver have already recorded strong gains during the past week. On the domestic market, gold futures for October delivery climbed Rs 8,444, or nearly 6%, to close at around Rs 1.51 lakh per 10 grams. Silver futures for September delivery surged Rs 14,268, or nearly 7%, to settle at Rs 2.31 lakh per kg on the Multi Commodity Exchange.
Analysts expect the positive momentum to continue, with gold potentially moving towards Rs 1.57 lakh per 10 grams and silver towards Rs 2.80 lakh per kg in the short term.
Gold’s strong rally was supported by weaker-than-expected US labour market data, which revived expectations of a more accommodative monetary policy from the US Federal Reserve. The weaker US dollar also encouraged fresh buying in precious metals.
In international markets, gold futures for December delivery jumped USD 292.7, or 7%, during the week to finish at USD 4,399.7 per ounce. Silver futures for September delivery climbed USD 5.71, or nearly 10%, to end at USD 63.50 per ounce.
Analysts said gold has broken out of its recent consolidation range. The rally was supported by a reversal in the US dollar, while crude oil prices remained in corrective mode, with oil falling close to USD 75 per barrel.
Geopolitical developments involving the US and Iran will also remain in focus. Any unexpected diplomatic or military announcement could trigger sharp movements in bullion prices when markets reopen.
Analysts expect volatility to remain elevated in the coming week as investors weigh US economic data, Federal Reserve policy expectations and continuing geopolitical uncertainty. These factors are likely to keep gold and silver prices highly sensitive to global developments.
