Gold, Silver Prices Seen Rising as US Inflation Data, West Asia Tensions Loom

Gold and silver prices are expected to remain firm next week due to various market factors. Analysts predict that inflation data from major economies, particularly the US, Germany, Japan, and India, will influence bullion markets.

Upcoming Chinese economic data is also likely to have an impact on industrial metals. The momentum for gold and silver looks positive, with a potential price increase towards Rs 1.57 lakh per 10 grams and Rs 2.80 lakh per kg in the short term, according to Pranav Mer, senior vice president at EBG - commodity & currency research, JM Financial Services Ltd.

On the domestic market, gold futures for October delivery rose by nearly 6% during the week, closing at Rs 1.51 lakh per 10 grams. Silver futures for September delivery gained around 7%, settling at Rs 2.31 lakh per kg on the Multi Commodity Exchange.

The strong rally in gold this week was fueled by weaker-than-expected US labour market data, reviving expectations of a more accommodative monetary policy from the Federal Reserve, said Jateen Trivedi, VP research analyst at LKP Securities. A weaker US dollar also encouraged fresh buying in precious metals.