Gold and silver prices are expected to remain firm next week, with inflation data from major economies and developments around efforts to end hostilities in West Asia likely to influence bullion markets, analysts said.Investors will track inflation figures from the US, Germany, Japan and India. Upcoming Chinese economic data will also be important for industrial metals, according to analysts.“Gold and silver momentum looks positive and are expected to trade with a positive bias and move up towards Rs 1.57 lakh per 10 grams and Rs 2.80 lakh per kg in the short term,” Pranav Mer, senior vice president, EBG – commodity & currency research, JM Financial Services Ltd, said, as quoted by news agency PTI.
Gold, silver post sharp weekly gains
On the domestic market, gold futures for October delivery rose Rs 8,444, or nearly 6 per cent, during the week to close at Rs 1.51 lakh per 10 grams.Silver futures for September delivery gained Rs 14,268, or nearly 7 per cent, to settle at Rs 2.31 lakh per kg on the Multi Commodity Exchange.“Gold witnessed a strong rally this week, gaining nearly 6 per cent, as weaker-than-expected US labour market data revived expectations of a more accommodative monetary policy from the Federal Reserve,” Jateen Trivedi, VP research analyst, commodity and currency, LKP Securities, said, as per PTI.He added that a weaker US dollar encouraged fresh buying in precious metals and helped gold record one of its strongest weekly gains in recent months.In international markets, gold futures for December delivery jumped $292.7, or 7 per cent, during the week to finish at $4,399.7 per ounce.Silver futures for September delivery rose $5.71, or nearly 10 per cent, to $63.50 per ounce.
US data, Iran developments to influence bullion
Mer said gold broke out of its recent consolidation range, supported by a reversal in the US dollar and crude oil prices remaining in corrective mode, with oil falling close to $75 per barrel.The next set of US inflation data will be closely watched for clues about the Federal Reserve’s monetary policy outlook. Inflation figures from Germany, Japan and India are also due, while Chinese economic data could influence industrial metals.Developments involving the US and Iran will also remain a key factor for bullion markets, Trivedi said. Any unexpected diplomatic or military announcement could trigger sharp moves in gold and silver when markets reopen on Monday.“Overall, volatility is expected to remain elevated in the coming week. The combination of US economic data, Federal Reserve expectations, and ongoing geopolitical uncertainty is likely to keep gold highly reactive,” he said.In the short term, analysts expect gold and silver to retain a positive bias, although their movement is likely to remain sensitive to economic data, interest-rate expectations, currency movements and developments in West Asia.
