Bullion Prices Rally on Geopolitical and Economic Cues

The outlook for gold and silver prices remains positive as they continue their upward rally. Analysts expect bullion to remain firm, weighing in on geopolitical and economic cues. The US Federal Reserve's FOMC meeting minutes will be closely watched for signals on the central bank's monetary policy outlook.

Gold futures for October delivery on the Multi Commodity Exchange (MCX) gained 2 per cent last week, closing at Rs 1.54 lakh per 10 grams. Silver futures for September delivery rose 1.9 per cent to Rs 2.35 lakh per kilogram. Internationally, Comex gold futures for December delivery rose nearly 1 per cent to $4,437.3 per ounce.

Jateen Trivedi, VP research analyst at LKP Securities, noted that the sharp August run-up could bring some pauses in MCX gold prices, making consolidation and intermittent profit-booking more likely. The US dollar, interest-rate expectations, and geopolitical developments will remain key drivers for bullion prices.

Pranav Mer, senior vice president at EBG - commodity & currency research, JM Financial Services Ltd, predicted that the outlook for gold and silver remains positive and are expected to move up towards Rs 1.57 lakh per 10 grams and Rs 2.54 lakh per kg level.