Gold and Silver Prices Poised for Further Gains Amid US Inflation Data and Geopolitical Tensions
Gold and silver prices are expected to continue their upward momentum next week, but profit-booking at higher levels may temper the rally as investors await key US inflation data. The upcoming release of US Core Personal Consumption Expenditures (PCE) inflation and GDP figures will be closely watched by bullion traders. In addition, developments surrounding West Asia geopolitics, particularly the US-Iran peace deal and reopening of the Strait of Hormuz, will also remain in focus.
The recent rally was supported by renewed buying interest in bullion, softer bond yields, and improving liquidity conditions. Gold futures for October delivery gained Rs 7,932, or 5.13 per cent, to close at `1.62 lakh per 10 grams on the Multi Commodity Exchange (MCX), while silver for September delivery surged `10,673, or 4.52 per cent, to settle at `2.46 lakh per kilogram.
The Jackson Hole symposium, scheduled for August 27-29, will also be closely watched by bullion traders, with Federal Reserve Chair Kevin Warsh set to deliver his first keynote address at the event. Analysts said that gold and silver prices are expected to retain their upward momentum next week, though profit-booking at higher levels may temper the rally.