Bullion Rally Set to Continue Amid Strong Demand
Gold and silver prices continued their upward trend last week, with both metals posting strong gains in the latest trading session. According to analysts, this rally may persist next week, but some investors could book profits after prices have already moved sharply higher.
The US Core Personal Consumption Expenditures (PCE) inflation data and US GDP figures are key events that will shape expectations about interest rates and the US Federal Reserve's next steps. Any significant change in these expectations can quickly move gold and silver prices.
On the domestic market, gold futures for October delivery rose by Rs 7,932 during the week, a gain of 5.13%. Silver also had a strong week, with September silver futures climbing Rs 10,673, or 4.52%, and finishing at around Rs 2.46 lakh per kilogram on the Multi Commodity Exchange of India (MCX).
Experts attribute the rally to fresh buying in bullion, lower bond yields, and better liquidity conditions that have supported prices.