Gold, Silver Prices Expected to Soar on Global Inflation, West Asia Tensions

Analysts predict gold and silver prices will continue their upward trend next week. Global inflation data, West Asia tensions, and Federal Reserve policy expectations are key drivers of this movement.

Investors will be watching inflation numbers from major economies such as the US, Germany, Japan, and India, as well as upcoming Chinese economic data for industrial metals. Pranav Mer, Senior Vice President at EBG - Commodity & Currency Research, JM Financial Services Ltd, expects gold and silver to trade with a positive bias and move up towards Rs 1.57 lakh per 10 grams and Rs 2.80 lakh per kg in the short term.

The weaker dollar has also encouraged fresh buying in precious metals, allowing gold to post one of its strongest weekly gains in recent months. Gold futures for the December delivery jumped USD 292.7, or 7 per cent, to finish the week at USD 4,399.7 per ounce, while silver for the September contract soared USD 5.71, or nearly 10 per cent, to USD 63.50 per ounce.

Volatility is expected to remain elevated in the coming week, with a combination of US economic data, Federal Reserve expectations, and ongoing geopolitical uncertainty likely to keep gold highly reactive. According to Jateen Trivedi, VP Research Analyst at Commodity and Currency, LKP Securities, developments involving the US and Iran will also remain in focus.