Gold and Silver Prices Surge on Softer US Inflation, Expectations of Easier Monetary Policy
Gold and silver prices have staged a strong comeback in August, gaining up to 14% so far this month. The rebound is largely attributed to softer-than-expected US inflation, employment, and consumer activity data, which has strengthened expectations of a less hawkish Federal Reserve.
Vandana Bharti, head of commodity research at SMC Global Securities, notes that precious metals have shown powerful momentum this month due to a combination of factors, including a weaker dollar, cooling inflation, robust over-the-counter and central bank buying, and improving ETF flows.
However, analysts do not expect the rally to be a straight-line move or bullion to swiftly reclaim record highs. Bharti expects domestic gold prices to remain capped near Rs 1.75 lakh per 10 grams and silver near Rs 3.20 lakh per kg through December 2026, advising investors against aggressive lump-sum buying.
Aamir Makda, Commodity & Currency Analyst at Choice Broking, also sees significant resistance ahead for gold at Rs 1.61 lakh-Rs 1.645 lakh and silver at Rs 2.55 lakh-Rs 2.68 lakh.