Gold, Silver Break Out of Consolidation as Inflation Concerns Rise

Gold and silver prices have broken out of their nearly four-month consolidation phase due to various global economic and political events. According to Tapan Patel, Fund Manager, Commodities at Tata Asset Management, the US Treasury's plan to double buybacks of longer-term bonds has been a key trigger.

Rising inflation concerns and the lack of a truce in the US-Iran conflict have also supported precious metals prices. Lower yields and a weaker dollar have further increased their appeal.

Experts believe that developments in the US-Iran conflict will remain another key factor, affecting oil prices and other commodities. The US Fed and US real yields are expected to be key triggers in September.