Bullion Prices Poised for Further Gains Amid Inflation Fears and Geopolitical Tensions
Gold and silver prices are expected to continue their upward trend next week as investors monitor global inflation data, US Federal Reserve expectations, and developments in West Asia. Last week, bullion posted strong gains due to weaker-than-expected US labor market data and a softer dollar, which strengthened expectations of a more accommodative monetary policy stance from the Federal Reserve.
Gold futures for October delivery rose by ₹8,444 (6%) during the week, closing at ₹1.51 lakh per 10 grams. Silver futures for September delivery jumped ₹14,268 (7%), settling at ₹2.31 lakh per kg on the Multi Commodity Exchange.
Pranav Mer, Senior Vice-President of EBG, Commodity & Currency Research at JM Financial Services, expects the positive momentum to continue. He predicts gold and silver could move towards ₹1.57 lakh per 10 grams and ₹2.80 lakh per kg, respectively, in the short term.
International bullion prices also recorded sharp gains, with gold futures for December delivery surging $292.7 (7%) during the week to $4,399.7 an ounce. Silver futures for September delivery soared $5.71 (10%), reaching $63.50 an ounce.