Gold, Silver Prices May Extend Rally Amid US Inflation Data and Fed Signals

Gold and silver prices have been on an upward trend in recent times, but analysts caution that profit-booking may limit further gains. The Multi Commodity Exchange (MCX) saw gold futures for October delivery gain ₹7,932, or 5.13%, to close at around ₹1.62 lakh per 10 grams.

Silver futures for September delivery jumped ₹10,673, or 4.52%, to settle at around ₹2.46 lakh per kg. Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, attributed the rally to renewed buying interest, softer bond yields, and improving liquidity conditions.

The global bullion market also saw significant gains, with Comex gold futures for December delivery gaining $243.3, or 5.5%, to finish at $4,680.6 per ounce, while September silver futures jumped $4.42, or nearly 7%, to settle at $69.53 per ounce in New York.

Analysts are now looking ahead to the US inflation data and Federal Reserve signals for direction in precious metals prices. Pranav Mer, Senior Vice President, EBG - Commodity & Currency Research at JM Financial Services, expects the overall bias to remain positive but notes that some profit-booking cannot be ruled out.