Gold, Silver Prices Expected to Extend Rally Amid Inflation
Gold and silver prices are expected to continue their upward trend due to inflation data from major economies and developments in West Asia. Analysts predict that investors will track inflation numbers from the US, Germany, Japan, and India, as well as upcoming 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 are expected to trade with a positive bias. He forecasts that prices will 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.
The domestic market has seen significant gains, with gold futures for October delivery climbing Rs 8,444 (6%) to close at Rs 1.51 lakh per 10 grams, and silver futures for September surging Rs 14,268 (7%) to settle at Rs 2.31 lakh per kilogram on the Multi Commodity Exchange.
The weaker dollar has encouraged fresh buying in precious metals, allowing gold to post one of its strongest weekly gains in recent months, said Jateen Trivedi, VP Research Analyst at LKP Securities.