Gold Price Rally Continues as Bullion Eyes New Targets
Gold and silver prices surged in the domestic market last week, with gold futures for October delivery climbing Rs 8,444 or nearly 6% to close at Rs 1.51 lakh per 10 grams on the Multi Commodity Exchange.
Silver futures for the September contract also surged Rs 14,268 or nearly 7% to settle at Rs 2.31 lakh per kilogram.
The weaker US jobs data boosted gold as it revived expectations of a more accommodative monetary policy from the Federal Reserve, according to Jateen Trivedi, VP Research Analyst at LKP Securities.
Gold and silver are expected to retain their upward momentum next week, with bullion likely to trade with a positive bias and move up towards Rs 1.57 lakh per 10 grams for gold and Rs 2.80 lakh per kg for silver in the short term, according to Pranav Mer, Senior Vice President at JM Financial Services Ltd.
Analysts are watching key triggers such as inflation data from major economies, including the US, Germany, Japan, and India, as well as developments on efforts to end hostilities in West Asia.