Gold and Silver Prices Poised to Extend Rally Amid Inflation Fears

Gold and silver prices are expected to continue their upward trend next week due to inflation data from major economies and developments in West Asia. Analysts predict that investors will track inflation numbers from the US, Germany, Japan, and India, as well as upcoming Chinese economic data for industrial metals.

According to Pranav Mer, Senior Vice President of EBG - Commodity & Currency Research at JM Financial Services Ltd, gold and silver momentum looks positive and are expected to trade with a positive bias, moving up towards Rs 1.57 lakh per 10 grams and Rs 2.80 lakh per kg in the short term.

On the domestic front, gold futures for October delivery climbed Rs 8,444, or nearly 6 percent, during the week to close at Rs 1.51 lakh per 10 grams, while silver futures for the September contract surged Rs 14,268, or nearly 7 percent, to settle at Rs 2.31 lakh per kilogram on the Multi Commodity Exchange.

Jateen Trivedi, VP Research Analyst at Commodity and Currency at LKP Securities, attributed gold's strong rally this week to weaker-than-expected US labor market data, which revived expectations of a more accommodative monetary policy from the Federal Reserve.