Bullion Prices Poised for Further Gains Amid Inflation and Geopolitical Tensions

Gold and silver prices are expected to continue their upward trend next week due to several key factors. Analysts point out that inflation data from major economies, including the US, Germany, Japan, and India, will be closely watched for its impact on bullion prices.

In addition, developments in West Asia may also influence market sentiment. As a result, investors are likely to keep a close eye on these events for any potential implications on precious metals.

Last week saw gold futures for October delivery rise by nearly 6% to Rs 1.51 lakh per 10 grams on the Multi Commodity Exchange (MCX). Similarly, silver futures for the September contract surged by around 7% to settle at Rs 2.31 lakh per kilogram.

According to Jateen Trivedi, VP Research Analyst at LKP Securities, gold's strong rally this week was driven in part by weaker-than-expected US labour market data, which revived expectations of a more accommodative monetary policy from the Federal Reserve.