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Commodities

Gold Prices Hold Firm Amid West Asia Tensions and Fed Minutes

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Market analysts expect gold and silver prices to remain positive next week despite elevated volatility, driven by developments in West Asia and key global economic data.

The Multi Commodity Exchange (MCX) saw gold futures for October delivery climb ₹2,686, or nearly 2%, last week to close at ₹1.54 lakh per 10 grams, while MCX silver for September contract gained ₹4,458, or 1.9%, to ₹2.35 lakh per kilogram.

According to Pranav Mer, Senior Vice President of EBG - Commodity & Currency Research at JM Financial Services Ltd, the outlook for gold and silver remains positive, with prices expected to move up towards ₹1.57 lakh per 10 grams and ₹2.54 lakh per kg level.

Jateen Trivedi, VP Research Analyst -- Commodity and Currency at LKP Securities, noted that gold traded higher this week, gaining 1% before profit-booking emerged at higher levels, and that MCX gold has gained nearly 9.5% in August, making consolidation more likely.

The minutes of the Federal Reserve's FOMC meeting will also be watched for signals on the US Central bank's monetary policy outlook.

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