Gold and Silver Prices Predicted to Rise Amid Inflation Data and West Asian Tensions

New Delhi: Analysts predict that gold and silver prices will continue to rise next week due to inflation data from major economies and tensions in West Asia. Investors are expected to track inflation numbers from the US, Germany, Japan, and India, as well as 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 will trade with a positive bias. He forecasts that gold prices could move up towards Rs 1.57 lakh per 10 grams and silver prices towards Rs 2.80 lakh per kg in the short term.

The domestic market saw significant gains this week, with gold futures for October delivery climbing Rs 8,444 or nearly 6% to close at Rs 1.51 lakh per 10 grams. Silver futures for the September contract surged Rs 14,268 or nearly 7% to settle at Rs 2.31 lakh per kilogram on the Multi Commodity Exchange.

Global markets also saw a strong rally, with gold futures for the December delivery jumping USD 292.7 or 7% to finish the week at USD 4,399.7 per ounce. Silver for the September contract soared USD 5.71 or nearly 10% to USD 63.50 per ounce.